it also announces new product offerings
Major lenders Barclays and HSBC have both unveiled mortgage rate reductions and new product offerings, providing more options for homebuyers, first-time buyers, and those looking to remortgage.
Barclays announced rate cuts of up to 30 basis points (bps) across its residential purchase-only range, effective from tomorrow, October 4. The bank is also launching new products, including a two-year fixed rate at 4.85% for 90% loan-to-value (LTV) with a £899 product fee and a five-year fixed rate at 3.92% for 60% LTV with no product fee.
Existing products have also seen rate reductions, such as the Premier two-year fixed rate at 60% LTV, which has dropped from 4.19% to 3.96%. Other cuts include the five-year fixed rate for 90% LTV, down from 4.65% to 4.47%, and the Springboard five-year fixed rate for 95% LTV, which decreased from 5.80% to 5.30%.
HSBC has also reduced rates across its residential and buy-to-let mortgage ranges, with cuts of up to 16bps for two- and five-year residential mortgages and up to 25bps for buy-to-let products. The bank’s lowest residential rate is now 3.83% for a five-year fixed remortgage at 60% LTV with a £999 product fee.
HSBC is also focusing on borrowers with smaller deposits, offering a five-year fixed rate at 4.16% for 80% LTV with £350 cashback. In addition, the bank introduced a new high-value mortgage range for loans over £2 million, with a £1,999 booking fee available across multiple LTV tiers.
Two of the UK’s largest mortgage lenders, both Barclays and HSBC have adjusted their pricing almost simultaneously in the past, as the two, along with other lenders, engage in a mortgage rate war that started when the Bank of England made its first base rate cut since the COVID-19 pandemic began.
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