HSBC has cut its standard variable rate on residential mortgages and relaxed lending criteria for international customers.  

The high street bank’s revert rate falls to 6.74% from 6.99%, the lowest it has been since January 2023. 

HSBC UK director of mortgage lending Oli O’Donoghue says: “Following a review, we are reducing our standard variable rate to 6.74%, which will benefit those customers who have chosen to transition onto a standard variable rate after their fixed rate term has finished.” 

The lender has also expanded the availability of mortgages to foreign national residents in the UK, by bringing lending rules for this cohort in line with UK residents who come directly to the bank. 

This follows similar changes the bank put in place for broker-originated mortgages involving foreign national residents in September.  

The move means its standard policy requirements apply where just one customer on an application has indefinite leave to remain.   

This is a change from requiring both customers applying for a mortgage to have indefinite leave to remain in the UK or EU settled status. 

It adds:               

• This allows applications of up to 95% loan to value where at least one applicant has indefinite leave to remain in the UK — an increase from 75% LTV 

• Gifted deposits are now acceptable for consideration as part of the mortgage application, where at least one applicant has indefinite to remain 

The bank adds where all applicants on an application do not have indefinite leave to remain, who are residing in the UK for one year or more, or earning £75,000 or more for a sole application/£100,000 or more for a joint application the changes include: 

• Increasing the maximum LTV available from 75% to 85% LTV 

• Borrowing can now also be used for debt consolidation. This means both UK and foreign nationals could apply for lending to help consolidate debt 

• UK rates will apply whereas previously foreign national customers living in the UK for less than 12 months would be subject to non-resident rates 

• Deposit must be gifted from own resources 

O’Donoghue adds: “Aligning our UK policies to international customers who want to come to us direct for a mortgage will help more people achieve their homebuying aspirations.”