Other major lenders also implement rate cuts
HSBC has announced reductions in new business residential rates, with cuts ranging from four to 18 basis points (bps).
The bank has also reduced buy-to-let new business rates by four to 14bps and residential switcher rates by up to 11bps.
For residential purchases, the new rates include a two-year fixed-rate mortgage at 60% loan-to-value (LTV) with no fee now at 4.99%, down by 9bps. The equivalent mortgage with a £999 fee has been reduced by 4bps to 4.79%.
A two-year fixed rate mortgage at 90% LTV with no fee is now 5.57%, reduced by 0.11%. A five-year fix at 60% LTV, with a £999 fee, was reduced by 8bps to 4.40%, while its counterpart at 85% LTV was cut by 4bps to 4.69%.
For buy-to-let remortgages, the new rates include a two-year fixed rate mortgage at 60% LTV with a £1,999 fee, with rates reduced by 14bps to 4.69%.
“We are firmly focused on helping customers onto or up the property ladder,” an HSBC UK spokesperson said. “There are a number of factors that are taken into account when setting mortgage rates, and following a review, we are reducing over 140 mortgage rates by up to 0.18%. We continue to keep our rates under review.”
Meanwhile, two other big mortgage lenders also announced rate cuts, with Barclays reducing several five-year fixed rates, including its 60% LTV product with a £999 fee, which has been slashed from 4.47% to 4.34%.
TSB also implemented rate reductions of up to 10bps on two- and five-year fixed rate mortgages for purchases.
“This latest round of mortgage rate reductions from some big lenders is great news for borrowers,” said Mark Harris, chief executive of mortgage broker SPF Private Clients. “They come on the back of a decline in swap rates, which underpin the pricing of fixed rate mortgages over the past week.
“These cuts should give other lenders confidence to make similar reductions, which will stimulate activity and provide a welcome boost for the market.”
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