High street lender reintroduces two-year fee saver and cuts selected rates
HSBC has announced product updates on its residential and buy-to-let mortgage ranges, effective from Wednesday, November 1.
Aside from rate cuts on a number of residential and BTL purchase and remortgage products, the lender has also announced the relaunch of its two-year fixed fee saver deal for UK residential first-time buyer and home mover customers at 95% loan-to-value (LTV) with a cashback incentive of £250.
According to news agency Newspage, many brokers welcomed the latest move from the high street lender, with one saying that “the cuts and changes show that HSBC is committed to supporting borrowers and helping them to find the right mortgage product for their needs.”
“The 95% loan-to-value mortgage for first-time buyers and home movers is a good move, as it will make it easier for borrowers to buy a home with a smaller deposit, while the £250 cashback incentive is a nice bonus for borrowers,” Darryl Dhoffer of The Mortgage Expert commented. “The reductions in buy-to-let mortgage rates are also positive news for landlords.”
Peter Stamford, director at Moor Mortgages, said that by slashing mortgage rates, HSBC has given “a treat this Halloween.”
“If you’re house-hunting, it’s no trick: now’s a spooktacular time to secure a lower rate,” he quipped.
Steven Hargreaves, mortgage and protection adviser at The Mortgage Co, also made a ‘trick-or-treat’ remark on the latest rate reductions from one of the UK’s largest mortgage lenders.
“We have a treat on Halloween rather than a trick from HSBC,” he said. “Rate cuts have seemed a bit quieter this last week or so, so let’s hope this kickstarts the rate reductions again.”
Gary Boakes, director at Verve Financial, agreed with Hargreaves, saying that the rate reductions have slowed during the past few weeks with swap rates being fairly stable.
“But with HSBC making rate reductions, this is usually followed by the other big lenders making similar reductions,” Boakes pointed out. “Could this mean another positive meeting on Thursday with the base rate staying at 5.25%? Let’s hope so.”
Rohit Kohli, operations director at The Mortgage Stop, believes so.
“I think this indicates that lenders are expecting another hold decision from the Bank of England, which I certainly think makes sense given some of the dire numbers seen this week in relation to the housing market,” he said.
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