Lender announces its third cut in just two weeks
In what’s fast beginning to feel like déjà vu, HSBC UK has announced its third rate cut in just two weeks, and its second within a matter of days.
Within its UK residential existing customer switching / borrowing more products, it two-year fixed fee saver, two-year fixed standard, three-year fixed fee saver, three- and five-year fixed standard, its five-year fixed fee saver, two- and five- year fixed premier exclusive will see various decreases at 60% LTV and above.
There are also decreases within its UK residential first-time buyer / home mover range:
Its two-year fixed fee saver, two-year fixed standard, two- and five- year fixed high value mortgages, five-year fixed fee saver, five-year fixed standard, two-year fixed premier exclusive and five-year fixed premier exclusive will see various decreases at 60% LTV and above.
Further reductions will also be seen within HSBC’s first-time buyer / home mover energy efficient home range, and its UK residential remortgage, to name just a few. All changes will be effective from this Friday,
According to industry commentator Nicholas Mendes, mortgage technical manager at London broker John Charcol, the bank’s repricing, confirms a determined push to regain its leading position in the mortgage market – and he identifies the start of a price war among lenders. “This latest move follows closely behind recent repricing from Barclays and Halifax, both of whom have trimmed rates across residential and buy-to-let ranges,” said Mendes.
Barclays introduced widespread reductions effective from today, including stand-out three and five-year fixed deals under 4% for both homebuyers and landlords, Mendes notes. Halifax followed suit, reducing selected fixed rates by up to 0.15 per cent for home movers and remortgage customers.
“In this context, HSBC’s latest rate change appears not just reactive but strategic,” he reasoned. “With cuts applied across residential, buy-to-let, and international ranges, it is clearly aiming to re-establish itself at the top of the pricing tables. Falling swap rates and a softening outlook from the Bank of England have created the conditions for lenders to move more aggressively, and HSBC is taking full advantage. We have begun the next price war.”
Mendes anticipates further activity in the marketplace among the big players. “With multiple big names now making successive reductions and competition intensifying by the day, the battle for best-rate positioning is well and truly under way. It would be no surprise to see further movement from other major lenders in the coming days.”
