Selected residential and BTL products will have lower rates from tomorrow
HSBC has announced new rate cuts on selected residential and buy-to-let products, effective from tomorrow, September 27.
Two- and five-year fixed fee saver and standard rates on the lender’s existing residential customer switching or borrowing more range will be reduced, as well as two-, three-, and five-year fixed fee saver, standard, and premier exclusive rates on the residential first-time buyer or home mover range.
Selected products on the residential remortgage, residential remortgage cashback, and international residential ranges have also had their rates slashed.
One of the UK’s six largest mortgage lenders, HSBC has also lowered the rates of selected products in its existing buy-to-let customer switching or borrowing more, BTL purchase, and BTL remortgage ranges.
Meanwhile, news agency Newspage has compiled comments from brokers, who welcomed the positive news.
“This is another very positive step for the market, with HSBC also now reducing rates,” Denni Tyson, mortgage broker at Henchurch Lane Financial Services, said. “For the first time in months, I have been able to write a mortgage with a ‘four’ at the start.
“Hopefully, this will push more rates into the sub-5% space, which will calm things and give consumers plenty of options with their existing mortgage deals.”
Rob Gill, managing director at Altura Mortgage Finance, added that lenders are delivering rate cuts on a daily basis now that the mortgage price war is in full swing.
“This is great news for borrowers, and a significant boost to the property market as it emerges from a long summer slowdown,” he said.
For Rohit Kohli, operations director at The Mortgage Stop, it is a domino effect at the moment as when one of the major lenders reduces, others will almost certainly follow.
“It is welcome news for people rolling off their fixed rates in the coming weeks and months as this will take some of the pain out of the rises they were expecting,” Kohli said.
“But we’re not out of the woods yet. It’s still going to be another tough winter for many, despite these reductions. The mortgage market now is worlds apart from what it was just over a year ago.”
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