HSBC has introduced rate reductions across its residential and buy-to-let (BTL) product ranges, effective from tomorrow (3rd December).
The changes were introduced to provide more competitive options for customers across multiple categories, including existing residential customer switching, additional borrowing, first-time buyers, home movers, and remortgages.
For existing residential customers switching products, the rates for 2-year fixed fee saver mortgages at loan-to-value (LTV) ratios of 80%, 85%, 90%, and 95% will decrease.
Similarly, 2-year fixed standard products at 80%, 85%, and 90% LTV will also see rate reductions.
HSBC made similar adjustments to its 3-year fixed fee saver mortgages at 70%, 75%, 80%, 85%, and 90% LTV, as well as to 3-year fixed standard products at 80% LTV.
5-year fixed options will also benefit from reduced rates, including the fee saver products at 90% and 95% LTV, standard mortgages at 90% LTV, and the premier exclusive product at 90% LTV.
First-time buyers and home movers will also benefit from decreased rates.
HSBC reduced rates on its 2-year fixed fee saver and standard products at 80%, 85%, 90%, and 95% LTV, as well as on 5-year fixed fee saver products at 90% and 95% LTV.
The 5-year fixed standard and premier exclusive products at 90% LTV are also included in the reductions.
HSBC is extending these rate reductions to energy-efficient homes, specifically those rated A or B on the Energy Performance Certificate (EPC).
Customers purchasing or remortgaging such properties will benefit from lower rates on 2-year and 5-year fixed fee saver and standard products at a range of LTV levels, making these environmentally friendly homes more affordable.
For customers seeking to remortgage, HSBC has lowered rates for 2-year fixed fee saver and standard products at 80%, 85%, and 90% LTV.
This adjustment also applies to remortgages involving energy-efficient properties and cashback remortgage options, providing a broad array of choices for homeowners looking to refinance.
Buy-to-let (BTL) customers will see reductions in rates for 2-year fixed fee saver and standard products at 60% LTV, catering to existing borrowers looking to switch or borrow more.
HSBC’s international residential products are also part of the changes, with reduced rates for 3-year fixed fee saver mortgages at 70% and 75% LTV, further broadening the scope of the rate reductions.
The bank’s product finder tool and sourcing systems will be updated to reflect these changes from 3rd December.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “HSBC’s latest rate cuts provide a welcome boost for borrowers across its residential and buy-to-let (BTL) mortgage product ranges.
“Following Barclays’ recent move, HSBC’s adjustments reflect a steadier market, with swap rates stabilising and holding lower in recent days.
“These reductions, spanning first-time buyers, home movers, remortgages, and even energy-efficient properties, are a positive step for those looking to secure a better deal.”
He added: “For borrowers, this is an encouraging development to start December.
“Whether you’re locking in a fixed deal for a new home, borrowing more, or securing a better rate for an energy-efficient property, these reductions are well-timed.
“That said, it’s still early days to call this a “price war,” as not all lenders have moved in unison. The stability in swaps has simply given lenders like HSBC the room to adjust.
“With no changes to other interest rates at this time, all eyes will be on whether more lenders follow suit in the coming weeks.
“For now, HSBC’s rate cuts are a strong signal that the market is gradually moving towards stability after a challenging few months for both lenders and borrowers.”
