HSBC has just announced it is cutting rates from tomorrow, 15th November. Brokers welcomed the move, saying the lender means business and are bracing themselves for a busy end to the year as activity levels pick up.
According to Ranald Mitchell, director at Norwich-based Charwin Private Clients: “With inflation coming down, it is only a matter of time before someone takes the plunge with a significant rate announcement, and HSBC is a contender. Today, they have announced widespread rate cuts across their range so all eyes are on the grand unveil tomorrow. Let’s hope they mean business.”
Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages, was also upbeat: “Further rate reductions from HSBC are greatly appreciated, especially those on the higher loan-to-value brackets. This should kick-start another round of rate reductions, some before and some after the expected good news on inflation due this week. With each day that passes, there are more reasons to be positive in the mortgage market.”
Craig Fish, director at London-based broker, Lodestone Mortgages & Protection, also welcomed the news: “While we don’t yet know the specifics, these rate cuts from HSBC show they are out to do business. Let’s hope there is some focus on those who wish to remortgage and on those borrowing at higher loan-to-values. It does look like the rate war is on, and with the high expectation of positive inflation data tomorrow, this could be a common theme in the lead-up to Christmas. It could get busy towards the end of the year as borrowers increasingly come out of their shells, enticed by better mortgage rates. Brokers should start bracing themselves for a potentially busy month.”
Elliott Culley, director at Switch Mortgage Finance, added: “It’s no surprise to see a lender of HSBC’s size and stature continuing to reduce their rates. Swap rates are continuing to reduce as more positive data is being released on inflation cooling and base rate stability. Expect others to follow.”
Rohit Kohli, director at The Mortgage Stop, was also upbeat, but doesn’t expect a cut to the base rate anytime soon:: “HSBC has provided us with some positive news following the shocking company insolvency and debt relief order data published this morning. Swap rates have continued to reduce and the market has been crying out for this type of stability so I think the Bank of England have finally got it right with holding rates. I don’t think we’ll see the base rate reduce in the near future but it’s welcome news for homebuyers and people remortgaging.”
Ben Tadd, director at Chippenham and Bath-based broker, Lucra Mortgages, said the cuts reflect the race for market share: More positive news for mortgage borrowers as HSBC throws its hat into the rate war ring in an attempt to maintain market share. Nationwide slashing their rates last week has prompted a response from the rest of the big six lenders, with a need to compete on pricing. Halifax, another one of the big six lenders, has also just announced further cuts to their purchase products from tomorrow, so the rate war rumbles on. More lenders are bound to follow suit with further rate reductions in the coming days to ensure they maintain their market share.”
But Darryl Dhoffer, director at The Mortgage Expert, said: “This reminds me of the last squeeze on a tube of toothpaste. As yet we don’t know what the decreases will be. If it is yet another lender reducing rates for consumers with 40% deposit/equity then, in my opinion, it’s another PR exercise and little else. We need high LTV market rate reductions to be eye-catching news, along with reductions on existing customer rates, to reignite the market.”
Justin Moy, managing director at Chelmsford-based broker, EHF Mortgages, concluded: “With the expected positive inflation figures, it’s inevitable that mortgage lenders like HSBC will look to improve their range of products. HSBC has reduced rates across their whole range including higher LTV products, a welcome relief to many first-time buyers in particular. Other lenders will be lining up to follow HSBC this week to remain competitive in a subdued market.”
