HSBC to implement a number of residential and buy-to-let mortgage rate reductions

Effective from tomorrow, Friday 17th May, HSBC UK is set to implement significant changes to its residential and buy-to-let (BTL) mortgage product ranges, aimed at providing more competitive offerings to customers.

One notable change is the removal of the 10-year fixed rate fee saver and standard rates for residential remortgage customers until further notice.

For existing residential customers considering switching or borrowing more, several decreases in rates have been announced across different fixed-term options and loan-to-value (LTV) ratios.

This includes decreases in rates for the 2-year fixed Fee Saver, 2-year fixed Standard, 5-year fixed Fee Saver, 5-year fixed Standard, and 5-year fixed Premier Exclusive.

Similarly, HSBC’s residential first-time buyer and home mover categories will also benefit from decreases in rates across multiple fixed-term options and LTV ratios.

This includes both 2-year and 5-year standard and exclusive products from 60% to 90% LTV.

In a move to promote energy efficiency in homes, HSBC has also reduced rates for residential first-time buyers and home movers with energy efficient homes (with A and B Energy Performance Certificate (EPC) rated properties).

Residential remortgage customers will benefit from decreases in rates across different fixed-term options and LTV ratios, including 2-, 3- and 5-year fixed rate products.

Similar adjustments have been made to residential remortgage cashback offers and residential remortgage energy efficient home options.

For international residential mortgage products, decreases in rates have been implemented across various 2-, 5- and 10-year fixed-term options, between 60% and 70% LTV.

In addition, existing buy-to-let (BTL) customers looking to switch or borrow more will also experience decreases in rates, particularly across HSBC’s 2-year fixed standard offering.

Lastly, the lender’s buy-to-let remortgage options have also been subject rate reductions, and includes a number of 2-year and 5-year fixed products.

Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “Following last week’s announcement that the bank rate would remain unchanged, there has been a noticeable shift in the swaps market.

“Financial markets have adjusted their forecasts, signalling a potential end to the recent trend of lenders increasing their rates.

“As most lenders have raised their rates in recent weeks, there is now significant potential for rate reductions in the coming fortnight.

“HSBC’s latest decision to reprice its rates downward is a positive development and is expected to prompt similar actions from other lenders.

“This move is anticipated to increase competition among lenders, potentially leading to more favourable mortgage rates for consumers.”

He added: “For those who have recently applied for a mortgage, it is advisable to consult with a mortgage broker.

“Given the changing market conditions, you may have the opportunity to switch to a lower rate, which could result in substantial savings over the term of your mortgage.

“Speaking with a broker will help you understand your options and make an informed decision considering these recent market adjustments.”