HSBC is set to reduce rates across multiple residential mortgage categories, starting tomorrow (Tuesday, 5th September). This change will affect a broad range of customers including existing borrowers, first-time buyers, home movers, and those looking to remortgage.
For existing HSBC residential customers considering switching or borrowing more, the 5-year Fixed Fee Saver at 75% loan-to-value (LTV) and the 5-year Fixed Standard at 60%, 70%, and 75% LTV will see reduced rates.
First-time buyers and home movers will also benefit from lowered rates on the 2-year, 3-year, and 5-year Fixed Fee Saver and Standard products for varying LTV ranges, from 60% to 90%. The 5-year Premier Exclusive rates will also decrease for LTVs between 60% and 90%.
Those planning to remortgage are not left out. Rates will drop for the 2-year, 3-year, and 5-year Fixed Fee Saver and Standard mortgages at LTVs ranging from 60% to 85%. Additionally, the 5-year Premier Exclusive will have reduced rates for LTVs between 60% and 85%.
For international residential purchases, rates will decrease for 2-year, 3-year, and 5-year Fixed Fee Saver and Standard mortgage products at 60%, 70%, and 75% LTV. The 5-year Premier Exclusive rates will also be lowered for the same LTVs.
Nick Mendes, technical manager at John Charcol, said: “HSBC has laid down the gauntlet and shown they mean business with a further rate reduction.
“This is their second rate reduction in a week along with criteria changes which extend terms to 40 years as well as improving their foreign national lending policy.
“Great to see a lender kick off the week and hopefully spur others to make changes.”
Further reaction
Elliott Benson, owner and mortgage broker at Sett Mortgages:
“Even more rate reductions, which is great news for people starting to look to buy and also those who may have started the re-mortgage process in the last six months who can now potentially switch to a cheaper rate before completion. Lenders want the business and I think this is going to continue for the foreseeable future.
“The difficulty at the moment is I don’t think it has caught on yet that fixed rates are steadily reducing. Given the focus on base rate increases, the general assumption among the public is that fixed rates are increasing, too.”
Lee Gathercole, co-founder at Rebus Financial Services:
“It’s great to see big banks like HSBC continue to review their mortgage rates. HSBC are probably one of the best banks when it comes to this. It will be welcome news for current homeowners and first-time buyers. Hopefully other lenders will take a leaf out of HSBC’s book.”
Riz Malik, founder & director at R3 Mortgages:
“It was back to school for many of us today and for HSBC it is back to business. I’m certain other lenders will follow suit before the day concludes.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“This is another step in the right direction as mortgage rates continue to fall, although we must be mindful that this could be a short-lived reprieve if the Bank of England continues to increase the base rate next month.
“We’ve seen several changes in lending policy, such as lenders opting to allow longer terms and expanding the types of income they will allow, which all point to lenders trying to be more flexible as their lending volumes decrease and they seek to get more new business on the books.
“This shows that reduced housing and mortgage market demand is now starting to bite, and banks are looking for any way to keep the wheels turning as the growing clouds above the economy are slamming the brakes on borrowing.”
Justin Moy, managing director at EHF Mortgages:
“Rate reductions across their residential range is a great way to start the week, and hopefully the weather isn’t the only thing heating up this week. Every rate cut helps and encourages the rest of the mainstream market to follow their positivity.”
Ranald Mitchel, director at Charwin Private Clients:
“More in the tit-for-tat rate race between the bigger lenders. There is a determination not to be outdone by competitors and long may it continue. With these continued reductions you have to wonder why pricing was placed so high in the first place.”
Rohit Kohli, operations director at The Mortgage Stop:
“Well done HSBC for continuing to pass on reductions. This is very welcome and hopefully other lenders continue to follow their example as it’s very much needed at the moment.”
Anil Mistry, director and mortgage broker at RNR Mortgage Solutions:
“HSBC is making a smart move by reducing rates. This shows they’re ready for business. Let’s hope other banks on the high street do the same.”
