HSBC has announced a series of rate changes across its mortgages. The bank has not given details of what these cuts will be, but said it will apply to residential and buy-to-let (BTL) deals. This will include HSBC’s existing residential customer switching and borrowing more rates up to 95% loan to value (LTV) on select two-, three-, five- and 10-year fixed rates both with a fee and with no fee.
Adjustments will also be made to select two- and five-year fixed residential and homemover rates, and two- and five-year fixed remortgages both with and without cashback. For HSBC’s BTL borrowers, the five-year fixed existing customer switching and borrowing more rate at 60% LTV with no fee will be lowered, as will select two- and five-year fixed remortgages.
For international residential and BTL borrowers, certain two-, five- and 10-year fixed rates will be reduced. Nick Mendes, mortgage technical manager at John Charcol, said of the changes: “HSBC’s decision to start the year with a reduction in mortgage rates across its product range is a welcome move for the housing market. Following the festive period, this change comes at a crucial time, as many potential homemovers start re-engaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.
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“Today’s rate cuts span an extensive range of products, including options for existing residential customers switching, borrowing more, first-time buyers, homemovers, and even energy-efficient homes. These reductions, covering fixed terms from two to 10 years and LTVs of up to 95%, reflect HSBC’s efforts to remain competitive and [capture] a diverse range of customers. BTL investors and international clients are also included, widening the appeal.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said: “While many New Year fireworks displays were cancelled due to the weather, HSBC is determined to start the year with a bang. The good news for borrowers is this should see increased competition and further rate cuts over the coming weeks. Other lenders will almost certainly follow suit.”