Lender reprices multiple LTV bands across residential and BTL, including energy-efficient home products
HSBC UK will increase rates across a wide set of residential and buy-to-let mortgages from Monday, March 23, covering fixed-rate and tracker products for existing customers, movers, first-time buyers and remortgaging borrowers.
The high street lender said the rises will apply to residential deals for existing customers switching, as well as those borrowing more, across fixed-rate “Fee Saver” and “Standard” products at a range of loan-to-value (LTV) bands. The changes also extend to 10-year fixed products within the same segments.
The lender’s tracker ranges are also being repriced, including two-year tracker “Fee Saver” and “Standard” products across multiple LTV tiers for existing customer switching and for borrowers increasing their borrowing.
For new purchase lending, HSBC said increases will apply to UK residential first-time buyer and home mover products, again spanning two-, three- and five-year fixed-rate options at several LTV levels, alongside tracker products. The bank also flagged increases to its “High Value” mortgage fixed and tracker offerings for selected LTV tiers.
HSBC is also repricing residential “Energy Efficient Home” products for ‘A’ and ‘B’ EPC-rated properties, including first-time buyer and home mover variants, with increases covering fixed-rate and tracker lines across a range of LTVs.
For the remortgage market, the bank said it will raise pricing across its UK residential remortgage ranges, including standard remortgage and remortgage cashback products, as well as their energy-efficient equivalents for ‘A’ and ‘B’ EPC-rated properties. These changes cover two- and five-year fixed products, plus tracker products at multiple LTV bands.
International residential and international remortgage rates will also move higher. HSBC said increases will affect fixed-rate products across several terms, as well as tracker and fee saver tracker options at selected LTVs, alongside “Premier Exclusive” fixed-rate products.
For buy-to-let, HSBC will increase rates across its UK BTL purchase and UK BTL remortgage product ranges, including fee saver and standard fixed rates, trackers and selected “Premier Exclusive” fixed-rate options. The bank also listed increases for BTL products aimed at energy-efficient homes (‘A’ and ‘B’ EPC-rated properties), plus BTL existing customer switching and borrowing more. International BTL and remortgage ranges are included in the repricing.
Aaron Strutt (pictured right), product director at Trinity Financial, said rate pressure was building as lenders balance funding and operational constraints.
“Unfortunately, it seems likely that we are going to have another round of fixed rate price hikes, especially with future Bank of England base rate cuts looking well and truly off the table and the unanimous vote by the Monetary Policy Committee to hold base rate at 3.75%,” he remarked.
“HSBC has some of the cheapest fixed rates at the moment including a 4.01% two-year fix and a 4.16% five-year fix. Borrowers have all of today and until midnight on Sunday to get their mortgage applications in to secure these rates.
“Brokers have been submitting huge numbers of cases to ensure they get their clients the cheapest deals, so the combination of managing lending volumes to maintain processing times and as well as funding cost rises is leading to the increasing number of rate hikes. More of the smaller and specialist lenders are also pulling their mortgages often with very little notice citing unprecedented market conditions.”
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