HSBC has informed brokers that it will be introducing a wave new rate changes to its residential and buy-to-let (BTL) mortgage product ranges as of tomorrow, Wednesday the 27th of September.
For existing residential customers switching or borrowing more, the lender is set to reduce rates across its 2-year and 5-year fixed products.
In addition, residential first-time buyers and homemovers will also benefit from reductions, with 2-, 3- and 5-year fixed rates with a variety of loan-to-values set to decrease.
In HSBC’s residential remortgage range, its 2-year fixed fee saver, 2- and 5-year fixed standard, 3- and 10- year fixed fee saver and 5-year premier exclusive products will all also benefit from the new rate reductions.
Other ranges included in the reductions include HSBC’s international residential, existing buy-to-let (BTL) customer switching and borrowing more, BTL purchase and BTL remortgage ranges.
Reaction:
Nicholas Mendes, mortgage technical manager at John Charcol:
“As anticipated HSBC have revised their fixed rate following Nationwide’s early move last week in the wake of positive inflation data and the base rate pause.
“Santander made the first move this week, with HSBC firmly expected to price better than their counterpart.
“I expect to see further rate repricing this week and Coventry Building Society to also make a move.”
Rob Gill, managing director at Altura Mortgage Finance:
“With the mortgage price war in full swing, lenders are delivering rate cuts on a daily basis.
“This is great news for borrowers, and a significant boost to the property market as it emerges from a long summer slowdown.”
Elliott Benson, owner and mortgage broker at Sett Mortgages:
“This is brilliant news.
“We now have a full-on price war as we go into the final quarter of the year.
“Hopefully this will continue and kickstart the property and mortgage markets in 2024.
“It is about time positive news was broadcast to potential buyers aside from the usual doom and gloom.”
Denni Tyson, mortgage broker at Henchurch Lane Financial Services:
“This is another very positive step for the market, with HSBC also now reducing rates.
“For the first time in months, I have been able to write a mortgage with a ‘4’ at the start.
“Hopefully, this will push more rates into the sub-5% space, which will calm things and give consumers plenty of options with their existing mortgage deals.”
Riz Malik, founder and director at R3 Mortgages:
“Another day, another rate cut.
“This reduction will be welcomed by residential and buy-to-let borrowers alike and continues the good news from mortgage lenders following last week’s Bank of England hold decision.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“With another big lender reducing rates, now could be the perfect window if people are due to remortgage or buy to strike while the iron’s hot.
“Consumers should be aware that we could still see further base rate hikes in November so the best advice is don’t miss the boat thinking these reductions will continue into the future.”
Rohit Kohli, operations director at The Mortgage Stop:
“It is a domino effect at the moment.
“When one of the major lenders reduces, others will almost certainly follow. It is welcome news for people rolling off their fixed rates in the coming weeks and months as this will take some of the pain out of the rises they were expecting, but we’re not out of the woods yet.
“It’s still going to be another tough winter for many despite these reductions. The mortgage market now is worlds apart from what it was just over a year ago.”
Michelle Lawson, director- mortgage and protection adviser at Lawson Financial Ltd:
“Another lender announcing rate cuts and another reason to use a good broker who will review all the products available and ensure you get the lower rates offered.
“Lenders don’t do this if you go direct to them, even switching products. Expect more of the same in the coming days. The rate war is now well and truly on.”
Elliott Culley, director at Switch Mortgage Finance:
“Good news for borrowers and all the more so given that this covers both the residential and buy-to-let market.
“This trend is expected to continue for the next couple of weeks as lenders try to entice customers to borrow from them. They need new business and that’s really starting to show.”
