HSBC is set to implement changes to its residential and buy-to-let (BTL) mortgage product offerings, effective Wednesday 27th March.
The lender is also launching its Energy Efficient Homes range, tailored for UK residential first-time buyers, home movers and remortgage customers.
This proposition was developed to incentivise customers purchasing or remortgaging properties with Energy Performance Certificate (EPC) ratings of A or B, offering additional cashback incentives compared to the standard range.
For existing residential customers considering switching, the adjustments include decreases in rates for certain fixed-term options and loan-to-value (LTV) ratios, particularly affecting the 2- and 3-year fixed fee saver at 95% LTV and the 5-year fixed fee saver at 90% and 95% LTV.
Conversely, a number of rate increases will be implemented across various fixed-term options and LTV bands.
Similar adjustments apply to existing residential customers looking to borrow more, as well as first-time buyers and home movers.
Rates have been revised downwards for specific fixed-term options and LTV ratios, while increases are noted across others.
Residential remortgage customers are also affected by these changes, with adjustments in rates across different fixed-term options and LTV ratios.
Moreover, alterations have been made to residential remortgage cashback offers.
For international residential mortgage products, adjustments in rates have been implemented across various fixed-term options and LTV ratios.
Existing buy-to-let customers, whether switching or borrowing more, will experience increases in rates across certain fixed-term options and LTV ratios.
Additionally, adjustments have been made to BTL purchase and remortgage rates.
Nicholas Mendes, head of marketing at John Charcol, said: “It is interesting to see a split in pricing from HSBC in the latest notice of mortgage product changes.
“Higher LTV products are seeing a decrease with lower LTV products seeing an increase – clearly HSBC feel that despite the market pricing falling in recent days there is still more room needed to reprice any sub 4% 5-year fixed deals.”
