High street lender raises first-time buyer cashback to £2,000 and cuts more than 100 product rates
HSBC UK has raised its cashback offer for first-time buyers and reduced mortgage rates across a wide stretch of its remortgage and switcher range, in a move that will be closely watched by brokers active in the mainstream residential market.
The lender has raised the maximum cashback available to first-time buyers from £700 to £2,000. Cashback is now available across its first-time buyer products at 60% to 75% loan-to-value (LTV), and has been increased at 80% to 95% LTV.
Customers buying a property with an energy performance certificate (EPC) rating of ‘A’ or ‘B’ can now qualify for total cashback of between £1,000 and £2,000. For standard first-time buyer products, the cashback range has risen to between £500 and £1,500.
The refreshed range includes, for example, a five-year fixed standard product at 95% LTV with a £999 fee, priced at 4.77% and now carrying £1,500 cashback, up from £350 previously. The equivalent five-year energy efficient home deal at 95% LTV, also at 4.77% with a £999 fee, now offers £2,000 cashback, increased from £700. Cashback has also been added to first-time buyer Premier rates for the first time.
Alongside the cashback changes, HSBC UK has cut rates by up to 0.12 percentage points on more than 100 mortgages in its remortgage and product transfer ranges.
In its remortgage line-up, the two-year fixed fee-free product at 60% LTV has been reduced by 0.12 percentage points to 3.99%. The two-year fixed at 60% LTV with a £999 fee is now 3.71%, after a reduction of 0.07 percentage points. The five-year fixed at 60% LTV with a £999 fee has been trimmed by 0.03 percentage points to 3.80%.
The lowest rate in HSBC UK’s current range is now its Premier two-year fixed product at 60% LTV with a £999 fee, which has been cut by 0.07 percentage points to 3.68%.
The latest pricing and cashback changes follow earlier adjustments by HSBC UK to increase borrowing limits for certain segments of its residential book.
“We are absolutely focused on supporting customers manage the cost of buying a home in the best way we can, while remaining committed to responsible, sustainable lending,” said Oli O’Donoghue (pictured right), head of mortgages at HSBC UK. “As part of this, we are continuously reviewing our mortgage product range to ensure it offers strong value for customers.
“This year so far, we have already helped 28,000 first-time buyers realise their homebuying dreams and have delivered improvements to affordability and loan to income to support this.
“Expanding our first-time buyer cashback incentive and increasing the amount we offer goes even further to help more customers make that first step on the property ladder.”
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