What are the five-year fixed rates for residential home movers and first-time buyers?
HSBC UK has announced reductions in mortgage rates across its range of products, including options for first-time buyers, home movers, and buy-to-let investors.
The reductions, which span both two- and five-year fixed repayment mortgages, include decreases of up to 0.35%.
For residential home movers and first-time buyers, five-year fixed rate mortgages with a 75% loan-to-value (LTV) ratio have dropped by 0.05%, now available at 3.99%. Similarly, five-year fixed rate mortgages with an 80% LTV ratio have decreased by 0.06%, now at 4.29% with a £350 cashback offer.
In the remortgage segment, five-year fixed-rate deals at 75% LTV have been reduced by 0.06% to 4.18%, while two-year fixed rates at 60% LTV have seen a 0.10% decrease, bringing them down to 4.34%.
HSBC, one of the UK’s largest mortgage lenders, has also made significant cuts to its buy-to-let mortgage rates. Its two-year fixed-rate mortgage at 75% LTV has been reduced by 0.35%, now at 4.64%, and a five-year fixed-rate deal at 60% LTV has dropped by 0.17% to 4.19%.
“We’re frequently reviewing our mortgage rates and aim to remain as competitive in the market as possible,” a spokesperson for HSBC UK stated. “We’re really pleased we can offer even more customers rates that have dipped below 4% – some of our lowest rates since the start of the year.
“Our lowest product is still our 60% LTV five-year residential mortgage, which is offered at 3.84%, but we’re pleased to also now be offering 3.99% on our 70% and 75% LTV five-year residential mortgage ranges.
“We’ve also made further reductions in the higher LTV ranges offering 4.29% on our 80% LTV five-year residential mortgage, to further support those customers with smaller deposits and helping to make homeownership more accessible across a broader range of lending tiers.”
Since the Bank of England lowered the base interest rate from 5.25% to 5% last month, mortgage lenders have been fiercely competing to provide the most appealing rates. The rate war, experts said, are expected to breathe new life into the market for intermediaries, as prospective homebuyers begin to make their move.
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