HSBC UK is making reductions to its residential mortgage products effective from Monday 13th January.
Key changes include the introduction of a 2-year Premier Exclusive range with a £999 fee for various customer categories and a reduced booking fee for the 5-year Premier Exclusive range to £999.
The 5-year Fixed Premier Exclusive rates are decreasing for existing customers, first-time buyers, home movers, and remortgage customers at various loan-to-value (LTV) levels.
International residential rates are also decreasing for 5-year Fixed Premier Exclusive at 70% and 75% LTV.
HSBC urged borrowers and brokers to submit applications by midnight on the 12th of January, with supporting documentation provided within 30 days.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “HSBC has announced a fresh round of mortgage rate reductions specifically tailored to individuals meeting the Premier eligibility criteria, helping to limit any potential impact on service levels.
“Eligibility requires an annual income of at least £100,000 paid into an HSBC Premier Bank Account or savings/investments of £100,000 or more with HSBC in the UK.
“HSBC Premier clients already enjoy some of the best buy purchase rates in the market, and these latest repricing’s further solidify their position across the 70% to 90% LTV range.”
He added: “This move is particularly notable in a period where swap rates have been rising, defying expectations.
“While most lenders have not significantly raised their rates in response to recent increases in swaps, the pressure to do so is mounting.
“Swap rates, which heavily influence mortgage pricing, have been steadily increasing, narrowing the gap between them and the lower LTV best mortgage deals available.
“Lenders appear to be holding back on rate increases to avoid unsettling the market, but this restraint is unlikely to last indefinitely.
“If swap rates continue to rise, it inevitable that mortgage rates will have to give at some point, as lenders cannot absorb higher costs indefinitely.”
