Effective from tomorrow (Tuesday 4th June), HSBC will implement a series of changes to its residential and buy-to-let (BTL) mortgage product ranges.
The adjustments will see an increase in rates across various fixed-term options and loan-to-value (LTV) ratios, affecting both existing customers and new applicants.
Existing residential customers switching mortgages or borrowing more will see increases in rates for 2-year and 3-year Fixed Fee Saver products at LTVs ranging from 60% to 95%.
The 2-year Fixed Standard rates at LTVs of 60%, 80%, 85%, and 90% will also see increases.
Additionally, the 5-year Fixed Fee Saver and standard products at several LTV tiers will see rate hikes, as well as the 5-year Fixed Premier Exclusive options.
For residential first-time buyers and home movers, similar increases will apply across 2-year, 3-year and 5-year Fixed Fee Saver and Standard products at LTVs from 60% to 95%.
Residential first-time buyer and home mover energy efficient homes, those with A or B Energy Performance Certificate (EPC) ratings, will also face rate increases.
These will affect 2-year, 3-year, and 5-year Fixed Fee Saver and standard products across the 60% to 95% LTV range.
Residential remortgage rates will also increase across all fixed-term options, affecting both Fee Saver and standard products at various LTV levels.
This includes 2-year, 3-year, and 5-year Fixed Fee Saver products, as well as 5-year Fixed Premier Exclusive offerings.
Residential remortgage cashback, residential remortgage energy efficient home and international residential mortgage products will also experience rate increases.
For BTL customers, those switching or borrowing more will see increases in the 2-year Fixed Fee Saver products at 60%, 65%, and 75% LTV, as well as the 2-year Fixed Standard at 65% LTV.
The 5-year Fixed Fee Saver at 75% LTV and the 5-year Fixed Standard at 60% and 65% LTV will also face rate hikes.
Buy-to-let purchase and remortgage products will similarly see increases in the 2-year and 5-year Fixed Fee Saver and Standard products at various LTV levels.
The international BTL products will also be subject to higher rates across 2- and 5-year Fixed Fee Saver and standard products at 60%, 65%, and 75% LTV.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “HSBC have done well to have held their fixed rates for as long as they have, considering their last reprice saw many of their fixed rates decrease.
“In between that time markets have overwhelming revised their forecast of the next Bank rate reduction now to August.
“With HSBC holding out amongst the best buys for as long as they have is quite an achievement.
“I suspect that this latest reprice will put pressure on Barclays, Santander, TSB and potentially Halifax to review their pricing to adjust for increase in demand.”
