HSBC is set to reprice its residential and buy-to-let (BTL) mortgage rates with a series of adjustments effective from tomorrow, Wednesday 26th June.
This move will see numerous rate changes across a variety of products, affecting both existing customers and new applicants.
For existing residential customers who are switching mortgages, the 2-year Fixed Fee Saver at loan-to-values (LTVs) of 60%, 70%, 75%, 80%, 85%, and 90% will see a decrease in rates.
Similarly, both the 2-year and 5-year Fixed Standard products at LTVs of 60%, 70%, 75%, 80%, 85%, and 90% will also benefit from rate reductions.
Additionally, HSBC’s 3-year Fixed Fee Saver at LTVs of 70%, 75%, 80%, 85%, and 90% will decrease, along with the lender’s 3-year Fixed Standard, at LTVs of 80%, 85%, and 90%.
Its 5-year Fixed Fee Saver will see rate cuts at LTVs from 60% to 95%, and the 5-year Fixed Premier Exclusive will see reductions at LTVs from 60% to 90%.
For existing residential customers borrowing more, similar decreases will apply.
The 2-year and 5-year Fixed Fee Saver and Standard products at LTVs of 60%, 70%, 75%, 80%, 85%, and 90% will all see rate reductions.
HSBC’s 3-year Fixed Fee Saver and Standard products will also experience decreases across various LTV tiers, and its 5-year Fixed Premier Exclusive will have reduced rates at LTVs of 60% to 90%.
Residential first-time buyers and home movers will benefit from reduced rates across the board.
The lender’s 2-year, 3-year, and 5-year Fixed Fee Saver and Standard products at LTVs of 60%, 70%, 75%, 80%, 85%, and 90% will all see rate decreases.
Additionally, its 5-year Fixed Premier Exclusive will also have reduced rates at these LTV tiers.
For residential first-time buyers and home movers with energy efficient homes – A and B Energy Performance Certificated rated properties – rate reductions will apply to 2-year, 3-yeat, and 5-year Fixed Fee Savers and Standard products at LTVs of 60% to 90%.
Residential remortgage customers will see rate cuts in the 2-year and 5-year Fixed Fee Saver products at LTVs of 60%, 70%, 75%, 80%, and 85%.
2-year, 3-year, and 5-year Fixed Standard products will also have reduced rates across LTVs of 60% to 90%, along with the 5-year Fixed Premier Exclusive.
For buy-to-let (BTL) customers switching or borrowing more, the lender is reducing its 2-year Fixed Fee Saver at 65% and 75% LTV, and its 2-year Fixed Standard at 75% LTV.
The 5-year Fixed £1,999 Standard at 60% LTV will also decrease.
For buy-to-let purchase products, 2-year and 5-year Fixed Fee Saver and Standard products at LTVs of 60%, 65%, and 75% will see rate decreases.
The 2 Year Fixed £3,999 Standard at 60%, 65%, and 75% LTV, and the 5 Year Fixed £3,999 Standard at 75% LTV will also have reduced rates.
BTL Remortgage products will see reductions in the 2-year and 5-year Fixed Fee Saver at LTVs of 60%, 65%, and 75%, and the 2-year Fixed £1,999 Standard at 60% and 75% LTV.
For international residential customers, the lender is increasing 2-year, 3-year, and 5-year Fixed Fee Saver and Standard products at LTVs of 60%, 70%, and 75%.
HSBC has encouraged brokers to submit existing applications in full by midnight tonight, Tuesday 25th June.
A HSBC spokesperson said: “We’re here to support our customers and we remain committed to offering the best possible rates.
“That’s why we’re pleased to announce cuts to mortgage rates across 300 of our UK residential ranges including our first time buyer, home mover and switcher ranges, as well as our buy-to-let options.Â
“We are offering various cashback of between £300 and £500 on our first time buyer and home movers ranges.”
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “We can anticipate that lenders will escalate their strategies significantly over the next few weeks.
“Following last week’s Monetary Policy Committee (MPC) decision and with important wage data and General Election results on the horizon, markets are likely to anticipate further reductions in bank rates.
“On Friday, the 5-year money rate was at 3.82%, indicating that lenders certainly have room to lower 5-year fixed rates even further from their current levels.
“Interestingly, last week saw SONIA swaps holding steady at 5.2% since May 7th – the longest stable period since the benchmark’s inception in 1997.
“This stability has enabled lenders to avoid continuous repricing and focus on enhancing their service levels in preparation for the next repricing battle, reminiscent of earlier this year.”
He added: “Given that most recent lender repricing has involved increases, there is now potential for reductions.
“We’ve seen some movement but this latest reprice from HSBC is certainly going to spur on the market.
“The timings of competitor repricing similar to earlier in the year will likely be from next week, considering the forthcoming announcements.”
