Following similar moves from other lenders this week, including Santander, Coventry and TSB, HSBC will be increasing selected mortgage rates across a number of its product ranges.
For existing residential customers switching rates, the adjustments will see increases in rates across different fixed-term options and loan-to-value (LTV) ratios.
Similarly, for those looking to borrow more against their properties, rates have been revised upwards across selected fixed rate products ranging from 60% to 90% LTV.
First-time buyers and home movers will also see changes, with increases in rates across different fixed-term options and LTV ratios, particularly affecting the 5-year fixed Premier Exclusive range.
Residential remortgage, residential remortgage cashback, international residential mortgage products will also see a number of rate rises.
For existing buy-to-let (BTL) customers, both those switching and those borrowing more, adjustments have been made to rates across a number of fixed rate products.
Reaction:
Ashley Thomas, director at Magni Finance:
“HSBC hiking rates is yet another hammer blow to Britain’s beleaguered property market.
“2024 started on a high but those days now feel like a distant memory as more lenders reprice upwards.”
Elliott Culley, director at Switch Mortgage Finance:
“The reversal in rates over the past two weeks is a result of lenders cutting rates sharply in January in a bid to obtain as much business as possible.
“We are now in the hangover period from the rate war we experienced in January.
“Lenders squeezed their margins so much that any increase in swap rates, as we are now experiencing, would mean a reversal in rates.
“This shows have fragile the current market is and borrowers should remain proactive in the market to ensure the best deal.”
Justin Moy, managing director at EHF Mortgages:
“We are meandering back to the mortgage rates that we had at the end of 2023, effectively cancelling out the momentum we saw in the New Year.
“In particular, those looking to hit the peak time of house hunting will be disappointed to see HSBC increasing rates, in line with all major lenders recently.
“If there was ever a time for intervention from the Government, Bank of England, it’s now before we slip back into the pain of 2023 all over again.”
Mark Robinson, managing director at Albion Forest Mortgages:
“We have seen a lot of the high street lenders increasing rates this week.
“I don’t think there is anything to panic about and this is all part of normal fluctuations.
“The rates offered by lenders reflects their appetite to lend, for various reasons, any number of which can create a rate change.”
Gareth Davies, director at South Coast Mortgage Services:
“I’m getting well and truly fed up with the volatility of lender rate right now.
“We can’t go more than a day or two without things changing, and hikes like these are simply going to knock consumer confidence once again.”
Jack Tutton, director at SJ Mortgages:
“It’s no surprise that HSBC have followed many other lenders and increased their rates.
“Lenders have held off increasing their rates for a while to see if the market settled back down, but this hasn’t happened, leaving them no choice but to increase the rates that they can offer given their ever-tightening margins.”
Richard Jennings CeMAP, founder and managing director at Richard Jennings Mortgage Services:
“With yet another major lender increasing their product range, almost entirely, it appears the sunshine and promise of January has reverted back to the uncertainty and higher rates seen late last year.
“Unfortunately, there will be many consumers who saw rates declining in January and decided to hold off in the hope of getting even lower deals, now finding themselves being bitten by the increased rates.
“I don’t expect this to change anytime soon. Brace yourself for more quick rate removals and repricing at a higher level.”
Riz Malik, founder and director at R3 Mortgages:
“In a country with no one in the driving seat, it is not surprising that rates are volatile.
“The Bank of England as well as the government are equally to blame and, left unchecked, things could escalate quickly.
“After a bright start to the year, the storm clouds are brewing.”
Craig Fish, director at Lodestone Mortgages & Protection:
“With these latest changes from such a large UK lender, this a clear message to the public that we are closed for business.
“Most lenders have increased rates recently and it looks set to continue.
“The joy that was felt at the end of 2023 is long gone, and we are settling in for a long cold winter on the mortgage front, unless there is some positive news in the Spring budget or when the MPC next meet.
“Such a fragile market means that borrowers need to be very quick if they have to apply for finance in the short term.”
Harps Garcha, director at Brooklyns Financial:
“Another disappointing turn of events, however based on what has been happening over the last few weeks it’s no surprise.
“The question is, is this a temporary measure or did lenders get over-excited with their January sales?”
Nicholas Mendes, head of marketing at John Charcol:
“HSBC’s latest reprice was inevitable following competitor movements in recent days.
“Having the best buy rate over a weekend is risky business, as this would have resulted in being overwhelmed with applications.
“I expect we will have a few weeks of mortgage rates adjustments, as lenders will be busy balancing margin and volume to ensure this latest hiccup in rates doesn’t dampen the new year demand.
“Sub 4% deals will be off the cards temporarily, but once some positive data feeds back in to market confidence, pricing will slowly edge back down.”
