High street lender cuts pricing on fixed deals for existing borrowers, first-time buyers, home movers and investors
HSBC has reduced rates across a wide range of its mortgage products, with changes applying to residential and buy-to-let deals.
The rate adjustments, effective today, cover product switches, further advances, first-time buyer ranges, home mover and remortgage deals, including energy-efficient and cashback lines. The bank has also lowered pricing on international residential and buy-to-let fixed rates.
For existing residential customers switching, rates are decreasing on two-, three-, five- and 10-year fixed products across a wide range of loan-to-value (LTV) tiers. This includes Fee Saver and Standard options, as well as Premier Exclusive deals, with cuts visible from 60% up to 95% LTV in most cases.
Borrowers taking additional borrowing on their existing residential loans will also see reductions on selected two-, three-, five- and 10-year fixed products. Fee Saver, Standard and Premier Exclusive ranges are affected, again across multiple LTV bands from 60% to 90%.
First-time buyers will see lower pricing on two- and five-year fixed Fee Saver and Standard products at 80%, 85%, 90% and 95% LTV. HSBC has also reduced rates on high-value mortgages at 60%, 70% and 75% LTV, and on Premier Exclusive options at 80% and 85% LTV. Equivalent cuts apply to the lender’s first-time buyer energy-efficient range for A and B EPC-rated properties, with both Fee Saver and Standard products reduced at higher LTVs.
Home movers are affected in a similar way. Two- and five-year fixed Fee Saver and Standard products are being reduced from 60% to 95% LTV, alongside high-value and Premier Exclusive ranges at up to 90% LTV. The energy-efficient home mover range for A and B EPC-rated properties is also seeing rate reductions on two- and five-year fixed Fee Saver and Standard deals across the same LTV tiers.
In the remortgage segment, HSBC is cutting rates on two- and five-year fixed residential products, both Fee Saver and Standard, across LTV bands typically spanning 60% to 90%. High-value and Premier Exclusive remortgage options are also included. The lender’s cashback remortgage products, and corresponding energy-efficient and cashback energy-efficient remortgage ranges, are seeing similar reductions on two- and five-year fixed Fee Saver and Standard products.
For buy-to-let, rate cuts apply to purchase and remortgage products. Two- and five-year fixed Fee Saver and Standard deals, including higher-fee options, are being reduced at 60%, 65%, 75% and 80% LTV. Premier Exclusive products are also affected. The buy-to-let energy-efficient ranges for A and B EPC-rated properties are seeing reductions on two- and five-year fixed Fee Saver and Standard products for both purchase and remortgage. Existing buy-to-let customers switching or borrowing more will see lower pricing on selected two- and five-year fixed Fee Saver, Standard and Premier Exclusive products, primarily at 60%, 65%, 75% and 80% LTV.
International customers are also included in the changes. International residential and remortgage borrowers will see reductions on two-, three- and 10-year fixed Fee Saver and Standard products at LTVs typically between 60% and 75%, including Premier Exclusive options. International buy-to-let customers benefit from cuts to two- and five-year fixed Fee Saver and Standard products at 60%, 65% and 75% LTV.
Commenting on the latest rate cuts from HSBC, Nicholas Mendes (pictured right), mortgage technical manager at London broker John Charcol, said the move marks a notable early development in the 2026 mortgage market.
“HSBC has kicked off 2026 with the first notable mortgage rate cuts of the year, trimming pricing across a wide range of fixed deals rather than making a narrow headline change,” he said.
“While this will be welcomed by borrowers, it’s worth keeping expectations in check. Markets broadly expect Bank Rate to bottom out between 3.00% and 3.25%, likely requiring at least two further quarter-point cuts this year. However, much of that outlook is already priced into fixed-rate mortgages.
“The cheapest two- and five-year fixes remain below Bank Rate, reflecting expectations of further cuts. As a result, fixed mortgage rates are likely to fall by less than Bank Rate from here, and by the end of 2026 could once again be priced above Bank Rate as markets judge rates to be close to their long-term floor.
“This explains why lenders tend not to react dramatically to individual base rate decisions. Mortgage pricing is driven far more by expectations for where rates settle over the medium term than by short-term policy moves.”
According to Mendes, 2026 will still be a year of adjustment for households. “Around 1.8 million borrowers are due to refinance,” he noted. “Those coming off two-year fixes taken in 2024 should see some improvement, while borrowers rolling off five-year deals agreed when rates were near historic lows will still face higher repayments, even after recent cuts.”
He added that competition between lenders would remain intense, which should limit how far rates can rise. He, however, pointed out that the scope for sharp further falls “looks limited unless markets become convinced Bank Rate will settle closer to 3%.”
“Beyond rates, there are early signs of stabilisation in the housing market,” Mendes further said. “Real house prices fell in 2025, but easing mortgage rates, softer affordability stress tests, and continued criteria improvements – particularly for first-time buyers – point to modest growth in 2026, with significant regional variation and flats continuing to lag behind houses.”
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