Lender steps up competition, says broker
HSBC has announced that it will make reductions across its residential and buy-to-let mortgage ranges, from Monday (January 6).
The lender is yet to release exact details of the reductions but they 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.
There will also be changes made to its two- and five-year fixed residential and homemover rates, as well as two- and five-year remortgage products.
For its 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.
“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,” commented Nicholas Mendes, mortgage technical manager at broker John Charcol. “This change comes at a crucial time, as many potential home movers start re-engaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.
“These reductions, covering fixed terms from two to 10 years and LTVs of up to 95%, reflect HSBC’s efforts to remain competitive and capturing a diverse range of customers. Buy-to-let investors and international clients are also included, widening the appeal.”
The move follows a decision by Halifax and Leeds Building Society to make new year reductions to their fixed mortgage products.
