Latest reprice from the major lender is going to spur on the market, says expert
HSBC is set to implement a number of rate changes to its residential and buy-to-let mortgage product ranges starting Wednesday, June 26.
For existing residential customers switching, rates will decrease for the two-year Fixed Fee Saver, two- and five-year Fixed Standard, three-year Fixed Fee Saver, three-year fixed standard, five-year Fixed Fee Saver, and five-year Fixed Premier Exclusive across loan-to-values (LTVs) ranging from 60% to 95%.
The high street lender will also cut rates on the following products for existing residential customers borrowing more: two- and five-year Fixed Fee Saver, two- and five-year Fixed Standard, three-year Fixed Fee Saver, three-year Fixed Standard, and five-year Fixed Premier Exclusive, covering LTVs from 60% to 90%.
For residential first-time buyers and home movers, the two-, three- and five-Year Fixed Fee Saver, two-, three- and five-year Fixed Standard, and five-year fixed Premier Exclusive will see rate decreases across LTVs from 60% to 90%. These changes also apply to energy-efficient homes with ‘A’ and ‘B’ EPC ratings, except for the five-year Fixed Premier Exclusive.
HSBC, one of the UK’s largest mortgage lenders, has also repriced a number of its residential remortgages. Rate reductions will affect the two- and five-year Fixed Fee Saver, two-, three- and five-year Fixed Standard, three-year Fixed Fee Saver, and five-year Fixed Premier Exclusive, covering LTVs from 60% to 90%. For remortgage cashback, the two- and five-year Fixed Fee Saver and two- and five-year Fixed Standard will also have a rate cut.
For residential remortgages on energy-efficient homes with ‘A’ and ‘B’ EPC ratings, rates on the two- and five-year Fixed Fee Saver, two-, three- and five-year Fixed Standard, and three-year Fixed Fee Saver will decrease.
BTL existing customers switching or borrowing more will benefit from rate cuts on the two-year Fixed Fee Saver, two-year Fixed Standard, and five-year Fixed £1,999 Standard.
For BTL purchases, rate reductions will apply to the two- and five-year Fixed Fee Saver, two- and five-year Fixed £1,999 Standard, two-year Fixed £3,999 Standard, and five-year Fixed £3,999 Standard.
For BTL remortgages, rate decreases will be implemented on the two- and five-year Fixed Fee Saver, two-year Fixed £1,999 Standard, two- and five-year Fixed £3,999 Standard, and five-year Fixed £1,999 Standard.
Meanwhile, international residential mortgage rates will increase for the two- and five-year Fixed Fee Saver, two-, three- and five-year Fixed Standard, and five-year Fixed Premier Exclusive. International BTL mortgage rates will decrease for the two- and five-year Fixed Fee Saver and two- and five-year Fixed Standard.
Commenting on HSBC’s mortgage reprice, Nicholas Mendes, mortgage technical manager at John Charcol, said lenders would likely escalate their strategies significantly over the next few weeks.
“Following last week’s Monetary Policy Committee (MPC) decision, and with important wage data and general election results on the horizon, markets are likely to anticipate further reductions in bank rates,” Mendes stated. “On Friday, the five-year money rate was at 3.82%, indicating that lenders certainly have room to lower five-year fixed rates even further from their current levels.
“Given that most recent lender repricing has involved increases, there is now potential for reductions. We’ve seen some movement but this latest reprice from HSBC is certainly going to spur on the market.
“The timings of competitor repricing will likely be from next week, considering the forthcoming general election announcement.”
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