HSBC is set to introduce a series of adjustments to its residential and buy-to-let (BTL) mortgage product ranges, effective from tomorrow (Tuesday 22nd October).
These changes impact various mortgage categories, including first-time buyers, home movers, remortgages, and international customers, as the bank recalibrates its offerings in line with market conditions.
For existing residential customers looking to switch or borrow more, there will be reductions in the 2-year fixed standard mortgage at 80% and 85% loan-to-value (LTV) ratios.
For first-time buyers and home movers, the adjustments vary.
While 2-year fixed Fee Saver and standard products at 60% LTV will see an increase in rates, those at 80% and 85% LTV will see a decrease.
High-value mortgages at 60% LTV will also face rate hikes.
5-year fixed products across all LTV tiers, including Fee Saver, Standard, and Premier Exclusive offerings, will see increases.
For customers with energy-efficient homes, A or B Energy Performance Ceritificate (EPC) rated properties, 2-year and 5-year fixed Fee Saver and Standard products will be increasing at lower LTVs, while products at 80% and 85% LTV are set to decrease.
In the residential remortgage range, 2-year fixed Fee Saver mortgages at 60% LTV will be increasing, but rates for higher LTVs, such as 85% and 90%, will decrease.
High-value mortgage products are set for rate increases at lower LTV tiers, while Premier Exclusive products at higher LTVs will see reductions.
The same adjustments apply to those remortgaging energy-efficient homes, with similar increases and decreases in rate across the board.
HSBC’s Residential Remortgage Cashback offers will largely follow the same pattern, with the 2-year and 5-year fixed Fee Saver and Standard products at lower LTVs increasing in cost, while those at higher LTV ratios will see reductions.
In the buy-to-let remortgage range, HSBC is reducing rates across the board for 2-year fixed Fee Saver and standard products at 60%, 65%, and 75% LTV.
For international customers, both 2-year and 5-year fixed products for residential properties will see rate increases, including Fee Saver and Standard products at 60% to 75% LTV.
International buy-to-let mortgage rates will also increase, affecting both Fee Saver and Standard options.
HSBC urged brokers and borrowers to submit applications in full by midnight today (Monday 21st October).
The bank’s product finder tool and sourcing systems will be updated accordingly on 22nd October.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “HSBC’s latest mortgage rate changes reflect a strategic and varied approach, with a mix of increases and decreases across its product lines.
“The reductions in the 2-year fixed Standard products at 80% and 85% LTV suggest a focus on making mid-tier borrowing more attractive, particularly for homeowners looking to remortgage.
“However, the increases in lower LTV products, especially at 60%, point to a more cautious response to recent market volatility and rising funding costs.”
He added: “These adjustments align with similar moves from major lenders such as Barclays, Halifax, Santander, and NatWest, who have all reacted to fluctuations in swap rates.
“While these repricing changes signal short-term market volatility, they don’t necessarily indicate a long-term trend.
“In the broader economic context, falling inflation has strengthened the Bank of England’s position to consider rate cuts in November and possibly December.
“However, the market remains sensitive to changes in the economic outlook, with attention focused on next week’s budget for further direction.”
