HSBC has started to offer "buy to let" loans in what it says is a unique product for Malta, meeting a much-needed gap in the property market.

Buy To Let, the bank said yesterday, offers two specific advantages. Firstly, the product is not considered as a commercial loan and therefore lower interest rates apply. Secondly, the income from the letting of the property is considered as part of the customer's income, making Buy To Let more accessible.

"With Buy To Let HSBC is addressing the needs of a specific group of customers. It allows individuals the opportunity to buy or borrow against a property for the purposes of letting.

"Because of its specific nature, Buy To Let does not fit in to the commercial loan bracket and loan repayments may be spread over a maximum term of 25 years. HSBC's Buy To Let is a new, excellent and affordable opportunity for people looking to enter the letting market or with properties to let," said HSBC's chief executive officer, Shaun Wallis.

The president of the newly set-up Federation of Estate Agents, Douglas Salt, said: "Following HSBC's decision to be the leading supporter and sponsor of the federation, the launch of Buy To Let is another example of HSBC's commitment to the continuing planned development of the real estate industry in Malta.

"The Malta federation welcomes this bold initiative which will be beneficial to many of our customers and the industry in general. The rental market is picking up with more people turning to rent as they leave home earlier or due to single parent families and therefore this package will attract more people to invest in buy to lets," said Mr Salt.

More information is available from any HSBC branch. Details can also be obtained by calling HSBC customer service on 2380 2380 or from the website www.hsbc.com.mt.