HSBC UK has reduced its buy-to-let affordability stress rates for domestic landlords, a move the bank says is intended to improve access to finance and support the supply of rental homes.

The change is aimed at widening choice for landlords seeking to remortgage or raise additional borrowing, at a time when higher costs continue to weigh on the private rented sector.

Under the revised approach, landlords are able to borrow more against the same level of rental income than was previously possible, particularly at higher loan-to-value ratios.

At 80% LTV, a landlord looking to remortgage and borrow £184,000, supported by monthly rental income of £1,290, would previously have been limited to £165,000. Under the new stress rates, the full £184,000 is now available, representing an increase of 10%.

At 70% LTV, a landlord seeking to borrow £280,000 with monthly rental income of £1,814 would previously have been able to access £254,000. The updated stress rates now allow borrowing of the full £280,000, an uplift of 9%.

HSBC UK said the changes ease affordability constraints while maintaining responsible lending standards, and form part of a broader strategy to support sustainable growth in the private rented sector.

The revised stress rates build on a series of recent policy developments, including the launch of 80% LTV buy-to-let products in March 2025 and the introduction of top slicing in October 2025. The latter allows landlords to use surplus personal income to cover any rental shortfall when assessing affordability.

The latest update also includes reduced and simplified stress rates across the wider buy-to-let range, including the 80% LTV proposition, with HSBC UK highlighting additional support for lending on energy-efficient properties.

Oli O’Donoghue, head of mortgages at HSBC UK, said: “I’m pleased that we’ve been able to reduce our buy-to-let affordability stress rates to better support UK landlords.

By lowering stress rates, we are helping more landlords enter or remain in the buy-to-let market.

This supports access to quality rental homes and housing affordability more broadly. Lowering barriers to finance, and easier refinancing options, can help landlords manage costs, supporting greater stability in the rental sector.”