Rate reductions span fixed-term products for first-time buyers, home movers, remortgages, and energy-efficient homes
HSBC has announced rate reductions across its residential and buy-to-let mortgage product ranges, effective tomorrow, December 3.
The adjustments include rate cuts on two-, three-, and five-year fixed deals at various loan-to-value (LTV) tiers.
The changes impact several customer categories, including first-time buyers, home movers, remortgages, and energy-efficient properties. Existing residential customers switching or borrowing more will also see reductions, along with those in the BTL and international markets.
Among the key reductions are cuts to popular fee saver and standard products, including two-year Fixed Fee Saver at 80%, 85%, 90%, and 95% LTV, five-year Fixed Premier Exclusive at 90% LTV, three-year Fixed Fee Saver for international residential borrowers at 70% and 75% LTV. These reductions apply to energy-efficient homes rated ‘A’ or ‘B’ on the energy performance certificate (EPC) scale, and cashback remortgage products are also included.
Nicholas Mendes, mortgage technical manager at broker John Charcol, said HSBC’s latest move signals greater stability in the mortgage market following a period of volatility.
“These reductions provide a welcome boost for borrowers, particularly as swap rates have stabilised in recent days,” Mendes said. “Whether for first-time buyers, home movers, or landlords, the scope of these cuts reflects positive momentum.”
Mendes noted that while this development is encouraging, it does not yet indicate a price war among lenders.
“We’re seeing lenders like HSBC take advantage of stabilising conditions, but not all lenders have followed suit,” he added.
The reductions come after recent rate changes from other major lenders, including Barclays, further supporting signs of a steadier mortgage market. Industry experts will now be watching to see if additional lenders adjust their rates in the coming weeks.
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