It also increases its cashback offer for first-time buyer products at 95% LTV
HSBC has announced a number of changes, mostly rate cuts, across its residential mortgage products, effective from Tuesday, January 16.
For existing residential customers switching, the high street lender will make rate reductions on various products across different loan-to-value (LTV) ratios. The two- and three-year fixed fee saver at 60%, 90%, and 95% LTV will see a decrease, along with the two-, three-, and five-year fixed standard at 60%, 80%, 85%, and 90% LTV. Rate adjustments will also apply to the five-year fixed fee saver and five-year fixed premier exclusive at various LTVs.
For existing residential customers looking to borrow more, reductions will be implemented across products such as the two- and three-year fixed fee saver at 60% and 90% LTV, as well as the two- and three-year fixed standard at 60%, 80%, 85%, and 90% LTV. The five-year fixed fee saver, five-year fixed standard, and five-year fixed premier exclusive will also be repriced at different LTV deals.
HSBC’s rate cuts will extend to residential first-time buyers, impacting products like the two- and three-year fixed fee saver at 90% and 95% LTV, and the two- and three-year fixed standard at 80%, 85%, and 90% LTV. Furthermore, reductions can be expected in the five-year fixed fee saver, five-year fixed standard, and five-year fixed premier exclusive across various LTVs.
Residential home mover products will also be repriced, with rate decreases in products like the two- and three-year fixed fee saver at 90% and 95% LTV, and the two- and three-year fixed standard at 80%, 85%, and 90% LTV. There will also be rate cuts on the five-year fixed fee saver, five-year fixed standard, and five-year fixed premier exclusive at different LTV options.
International residential products at 60%, 70%, and 75% LTV will see reductions on the five-year fixed fee saver, five-year fixed standard, and five-year fixed premier exclusive products.
Meanwhile, for first-time buyer customers seeking a 95% LTV deal, HSBC has revised its cashback incentives. Previously set at £250, £350, and £500 for the two-year fixed, three-year fixed, and five-year fixed rates, the new incentives now stand at £750, £750, and £1,000, respectively.
Earlier this month, HSBC also implemented rate cuts on its residential and buy-to-let mortgage product ranges.
“Swaps have eased over recent days as fears on the potential impact on inflation of ships avoiding the Suez Canal have eased,” Nicholas Mendes, head of marketing at independent mortgage broker John Charcol, commented.
“We’re now returning to five-year mortgage closing in on 3.5%. HSBC have been quick to react to competitor repricing last week and the drop out of a Co-op who didn’t last too long due to service level. HSBC are a completely different lender so these latest rates will further strengthen their hold in the market and capitalise on this new year wave of optimism and opportunities.”
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