Following yesterday’s announcement, HSBC’s new rates have now gone live, with the highlights including 5-year fixed rates under 5%.
For first-time buyers (FTBs) the lender has launched a purchase 5-year fixed rate at 4.90% for Premier customers with a £1499 arrangement fee up to 60% loan-to-value (LTV).
For FTBs and home movers, HSBC has launched a 4.99% 5-year fix with a £999 arrangement fee, which is available up to 75% LTV.
Speaking to free news agency Newspage brokers were mixed in their response to the rates. According to Darryl Dhoffer, founder of Bedford-based The Mortgage Expert: “HSBC are leading the way now with a 75% loan-to-value product priced under 5%. Let’s hope other lenders follow suit in the days ahead. Things are really heating up now as lenders compete for market share.”
Lewis Shaw, founder of Mansfield-based Shaw Financial Services, was also impressed: “The rate war continues and with other lenders set to reprice in the coming few days, now is the time to get a deal locked in.”
But Rohit Kohli, director at Romsey-based mortgage broker, The Mortgage Stop, was disappointed that the sub-5% rates didn’t extend to those remortgaging: “It’s great to see rates come back below 5% for people, at least for those who can stump up the deposit required. Disappointingly, though, if you’re remortgaging you are still looking at 5%+ and I think HSBC have dropped the ball on this with their differential pricing. However, I don’t think it will be long before they readjust again once other lenders have made their own moves.”
Kohli’s views were shared by Craig Fish, Managing Director at London-based mortgage broker Lodestone: “This move from HSBC is a clear indication that they want to write business, and sends a clear message to the other lenders. Offering a sub-5% product up to 75% LTV is great news, it’s just a shame it isn’t available to remortgage customers, which is bizarre. Either way, expect more lender moves in the coming days.”
Meanwhile, Ranald Mitchell, director of Norwich-based independent mortgage broker, Charwin Private Clients, was not sure if the rate cuts would be enough to stimulate property market activity: “This is a good move by HSBC going sub-5% for first-time buyers and home movers, although how many will have that size of deposit remains to be seen. The question is, are rates at this level enough to reinvigorate the market or will buyers and movers continue their wait-and-see approach?”
Peter Stamford, director of Alston-based Moor Mortgages, went one further: “First-time buyers with a 25% deposit can now get a sub-5% mortgage from HSBC. If anyone has ever met a first-time buyer with a 25% deposit, please let me know so I can invite them to give a TED Talk on financial miracles.”
