Lender says to rush in applications before midnight to beat raise
In more bad news for clients, HSBC has said it will implement a series of mortgage rate increases starting tomorrow, impacting a wide range of its residential and buy-to-let mortgage products. This move follows similar rate adjustments by other lenders, which have been responding to higher funding costs and shifts in market dynamics.
The upwards pressure is influenced by recent fluctuations in gilt yields. These rising gilt yields indicate investor concerns, affecting swap rates that are key to setting mortgage prices. Brokers suggest that these rising costs, despite a recent Bank of England rate cut, have prompted lenders like HSBC, TSB, and Santander to adjust their mortgage rates upward.
Starting tomorrow, HSBC’s rate changes will affect both new and existing customers. Borrowers looking to switch, renew, or borrow additional funds on residential mortgages will experience increases across various loan-to-value (LTV) tiers, specifically on two-, three-, five-, and 10-year fixed-rate Fee Saver and Standard products. LTV options range from 60% to 95%, meaning customers across different borrowing levels will be impacted.
These hikes also notably affect first-time buyers and home movers. Customers in these categories will see rate adjustments on two- and five-year fixed products within the Fee Saver and Standard ranges, with options spanning 60% to 95% LTVs. High-value mortgage offerings at 60%, 70%, and 75% LTV will also face increases, affecting customers seeking larger loans.
In line with the trend toward supporting energy-efficient properties, rates for properties rated A and B on the Energy Performance Certificate (EPC) will also rise. HSBC’s two- and five-year fixed products for energy-efficient homes will see increases across several LTV options. This move reflects the broader industry’s shift in response to evolving environmental standards.
Remortgage clients will also be impacted, as HSBC applies rate changes to its two- and five-year fixed Fee Saver, Standard, and high-value remortgage products. These adjustments cover LTV brackets between 60% and 90% and include remortgage options with cashback incentives.
HSBC’s buy-to-let products are also part of the upcoming rate increase, affecting both switching and additional borrowing options. The changes include two- and five-year fixed rates at 60%, 65%, and 75% LTV, with some products featuring fixed fees of £1,999 and £3,999.
Additionally, HSBC’s international customers with UK residential mortgages should prepare for rate increases across various fixed Fee Saver and Standard mortgage products, with LTV bands of 60%, 70%, and 75%. International buy-to-let customers will face similar changes for LTV brackets between 60% and 75%.
HSBC has advised customers to submit applications by midnight tonight to secure existing rates before these adjustments take effect.
