From tomorrow (Thursday 5th October), HSBC will reduce a number of mortgage rates across its residential and buy-to-let (BTL) ranges.
For its residential customers, the lender cut rates across selected 2-year, 3-year and 5-year fixed rate products within a number of ranges.
These ranges include existing customers borrowing more or switching, first-time buyers, home movers, residential remortgages and international customers.
For its buy-to-let borrowers, HSBC decreased rates across its existing customer range, as well as its buy-to-let purchase and remortgage ranges.
The lender also removed its cashback incentive offering across a selection of 2-year and 3-year fixed rates at 60%, 70% and 75% loan-to-value (LTV) for UK residential first-time buyer and home mover customers until further notice.
The incentive remains available across higher LTVs for these customers.
Reaction:
Nicholas Mendes, mortgage technical manager at John Charcol:
“In quick succession to the Coventry announcement, HSBC have given forward notice of another rate reprice across their product range.
“HSBC have been repricing consistently in the last few weeks as lenders battle for the top spots – the lender’s last range change was on the 27th September.
“With NatWest and Nationwide repricing recently, this announcement from HSBC was almost certain to happen quickly.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“Lenders today are increasingly resembling Apple. They tell us they’re reducing rates without actually telling us what the rates are for 24 hours.
“It won’t be long before there is a live event much like you see in Silicon Valley.
“Either way, more rate cuts are welcome, and it’s a sure sign that lenders are now well and truly clambering to fill their depleted loan books.”
Bob Singh, founder at Chess Mortgages:
“It’s Q4 and it’s hit-targets time for lenders. We have seen wholesale cuts in pricing notably on the 5-year fixed rates.
“This is as much as we can expect to see this year unless rates take a dive due to recessionary fears which, based on what’s happening across the pond, is quite likely.
“Bearing in mind lenders rarely lose money on fixed rates this is a clear sign that rates could fall further in 2024.
“All eyes on the Tory conference for any signs of a revival in fortunes for builders and the property market.”
