With effect from Monday 18th September, HSBC will introduce a wave of new changes to its residential and buy-to-let (BTL) mortgage product ranges.
The lender introduced cashback offerings with an incentive of £350 across its 3-year fixed standard and 3-year fixed fee saver products within its UK residential first-time buyer and home mover ranges.
HSBC informed brokers that it would also decrease rates across a wide range of 2-year, 3-year and 5-year fixed rates within a number of its ranges.
Some of the ranges benefitting included its existing residential customer, residential first-time buyer/home mover, residential remortgage and residential remortgage cashback ranges.
The lender will also introduce rate reductions across its international residential, existing BTL customer, BTL purchase and BTL remortgage offerings.
In addition, it will be extending all of its 2-year fixed rate end dates to the 31st of December 2025, its 3-year fixed rates to the 31st of December 2026 and its 5-year fixed rates to the 31st of December 2028.
Nicholas Mendes, mortgage technical manager at John Charcol said: “HSBC have made further rate reductions, following days of competitors repricing.
“With the lenders’ last rate reduction only last week – competition is certainly hotting up.
“Given the current situation, we can expect high street lenders and building societies to make continuous reductions over the next few weeks.”
Further reaction:
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“This will be a good start to the week next week, as where HSBC leads the others follow, so I will expect more reductions across the board.
“It is great to see buy-to-let products reducing, too, as this is a real problem for landlords coming off super-low fixed rates this year.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Rates just continue falling with the cycles between reductions speeding up.
“What were weekly rate reviews are now happening every other day.
“While this is indicative of market confidence that the base rate is near its peak, it’s also a clear indication that lenders are fishing for market share in a heavily drought-shrunk pool of borrowers.
“With committed lending targets to be hit by year end, expect the rate fight to continue to escalate.”
Jamie Lennox, director at Dimora Mortgages:
“The mortgage tug of war continues between lenders, as they battle it out for market share in a barren market.
“HSBC often lead the way with reductions so we should expect even more lenders to follow and soon see some lenders offering residential deals starting with a four on a 5-year fixed rate.
“If we see another positive set of inflation data this month, these reductions could keep coming thick and fast.”
Justin Moy, managing director at EHF Mortgages:
“More good news from HSBC, especially as it includes buy-to-let and product transfer products, too.
“The improvement in swaps continues to drive down rates, as does the low volumes of applications. It may be one small step for HSBC, but it’s a potentially giant step for mortgage borrowers.”
Gary Boakes, director at Verve Financial:
“I am absolutely loving HSBC’s competitiveness.
“Over the past year they have made sure that they are always near the top of the sourcing tables and the other lenders must be getting sick of them now as they are consistently leading the way with their rate cuts. “
Charles Breen, founder and director at Montgomery Financial:
“These reductions are the latest moves in what increasingly resembles an all-out arms race between mortgage lenders.
“They are striving to compensate for the business they have lost.
“It is looking ever more likely that we are drawing nearer to the point where fixed interest rates may begin with a four, potentially sparking a resurgence in the property market as potential buyers rejoin the fray.
“HSBC’s decision to implement more rate cuts represents a positive development.
“Moreover, as swap and gilt yields have declined in recent weeks, there’s hope that this trend will persist, and HSBC are just following suit.
“Lenders are pulling out all the stops to stimulate demand after a challenging period.
“Following a summer filled with pessimism, it appears that as we transition into autumn, we may have reached a turning point.”
Elliott Culley, director at Switch Mortgage Finance:
“HSBC usually lead the way when it comes to rate reductions.
“We won’t know until Monday what the new rates are, but we will be getting closer to dropping under 5%, which will be great.
“They are also dropping the rates on their buy-to-let products, which is good news for landlords with properties in their personal names.”
Gareth Davies, director at South Coast Mortgage Services:
“Once again this is pleasing news from one of the ‘big boys’.
“Lenders are fighting for market share in a dampened market. The panic and mayhem of July seems a long way away.”
