High street lender to implement price cuts on residential and BTL products
HSBC UK has announced a further series of mortgage rate reductions across a range of residential, buy-to-let, and international products, including options for first-time buyers, home movers, remortgagers, and those seeking energy-efficient mortgages.
Effective from Tuesday, the new rates apply to both standard and premier products, with reductions across various loan-to-value (LTV) bands.
For residential first-time buyers and home movers, two- and five-year fixed rates at 60%, 70%, and 75% LTV have been lowered. Premier exclusive products at 70% and 75% LTV have also seen decreases. Energy-efficient mortgage options, covering ‘A’ and ‘B’ EPC rated properties, are included in the reductions for both first-time buyers and remortgagers.
Remortgage customers will benefit from lower rates on two- and five-year fixed deals at 60%, 70%, and 75% LTV. Cashback and energy-efficient remortgage products have also been reduced. Existing customers looking to switch or borrow more will see rate cuts on selected products.
Buy-to-let borrowers will also benefit from the changes, with reductions on two- and five-year fixed rates at 60% and 75% LTV for both new purchases and remortgages. International residential and international buy-to-let clients will also have access to lower fixed rates at 60% and 70% LTV.
The bank said premier mortgage rates remain available only to existing HSBC Premier current account holders.
Intermediaries are advised to check product availability before submitting applications, as some products may not be open for new business at the time of submission. To secure current product codes, applications must be fully submitted by Monday midnight.
The latest pricing move comes as competition intensifies among UK lenders, with several major banks announcing rate cuts and new product launches in an effort to attract borrowers. The ongoing rate war is driving down costs for homebuyers and those looking to remortgage, with the trend of lower pricing expected to continue as the Bank of England reduced its base rate in this month’s monetary policy meeting. Earlier this month, HSBC announced new rates for a variety of mortgage products available to both new and existing customers.
The high street bank reported mortgage growth of £2.6 billion in the year’s first half, driven in part by increased lending balances, though profit before tax dropped 7% year-on-year to £2.5 billion. Revenue for the UK business rose by 4% to £4.6 billion.
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