HSBC makes changes to mortgage rates across its product range

HSBC is set to adjust the rates of its mortgage products, impacting both residential and buy-to-let (BTL) offerings starting Tuesday, 23rd April.

The changes include increases in the rates of 2-year and 5-year fixed products for various loan-to-value (LTV) ratios, spanning from 60% to 90%. These adjustments will affect existing residential customers looking to switch or borrow more, as well as first-time buyers and home movers.

Specifically, rates will rise across the board for both standard and Fee Saver options in 2-year, 3-year, and 5-year fixed terms. Additionally, HSBC’s Premier Exclusive products, which are typically available at competitive rates for qualified customers, will see rate increases in the 5-year fixed category at several LTV levels.

For energy-efficient homes, which are rated A or B for Energy Performance Certificates (EPC), the rates will also increase, reflecting the bank’s alignment with environmental sustainability criteria while recalibrating its pricing structure.

The revisions extend to buy-to-let purchases and remortgages as well, with increases in 2-year and 5-year fixed terms at LTVs of 60%, 65%, and 75%.

Elsewhere today Natwest has increased selected 2- and 5-year Switcher rates by 0.10% on selected 2- and 5-year deals while Accord has made some changes to its Residential New Business range.

Nicholas Mendes, mortgage technical manager at John Charcol, said: “Swaps had increased at the end of last week following recent data announcements in the UK & US, with speculation building momentum of a delayed bank rate reduction to August adding to the likelihood of two or three bank rate reduction this year diminishing.

“This latest move from HSBC leaves Nationwide and NatWest leading from the front on purchase and remortgage deal, which will inevitably mean service levels coming under pressure and eventual similar moves in repricing from the remaining lenders.”