HSBC UK has introduced technology allowing international homebuyers to use their international credit history for a UK mortgage application.
HSBC said this would make UK mortgages more accessible to international buyers, as newcomers to the country and international borrowers often faced “roadblocks and delays” when trying to use their overseas credit history to apply for loans.
The previous process required international customers to retrieve and translate their own credit reports before applying for a mortgage, which HSBC said could be time-consuming and costly.
The new technology collates credit bureau connections into one place, removing the need to find, approach and complete requests on different platforms.
HSBC’s technology will also produce the report in English and add it to the mortgage application automatically.
This change comes from HSBC’s partnership with cross-border credit bureau Nova Credit, which last year allowed international customers to use their international credit histories to apply for a credit card with HSBC UK.
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The lender said it was the first major bank to launch an initiative allowing international mortgage applicants to obtain their credit history for a UK mortgage application.
HSBC said this would enable a more streamlined process for borrowers from eligible regions, including Australia, Switzerland, the Philippines and the US, as well as people who have moved to the UK in the last 12 months from one of 14 eligible regions.
This function will be immediately available on mortgage applications made directly to HSBC.
Oli O’Donoghue, head of mortgages at HSBC UK, said: “International customers often face difficulties in accessing credit facilities from overseas or when moving to a new country. We’re proud to be the first major bank to provide this innovative service to make it easier for customers to utilise their international credit history to help them secure a property in the UK, something that could be [a] vital part of a relocation. It is important that we cater to all our customers, including the needs of our global customers.
“Following a launch last year, HSBC UK has seen a great response from customers using this service to access our credit cards. I am, therefore, pleased that we are able to build on this by introducing this new service into our UK mortgages application process. It could be a game-changer for someone moving to the UK, or recently moved, and looking to settle and put down roots by buying a home.”
The bank recently widened its foreign national proposition, with a change to lend up to 95% loan to value (LTV) where any applicant has leave to remain in the UK or has EU settled status.
