HSBC has announced it will reduce rates on a range of mortgages on Monday 6 January.
The bank has not given details of what these cuts will be, but said it will apply to residential and buy-to-let (BTL) deals.
This will include HSBC’s existing residential customer switching and borrowing more rates up to 95% loan to value (LTV) on select two-, three-, five- and 10-year fixed rates both with a fee and with no fee.
Adjustments will also be made to select two- and five-year fixed residential and homemover rates, and two- and five-year fixed remortgages both with and without cashback.
For HSBC’s BTL borrowers, the five-year fixed existing customer switching and borrowing more rate at 60% LTV with no fee will be lowered, as will select two- and five-year fixed remortgages.
For international residential and BTL borrowers, certain two-, five- and 10-year fixed rates will be reduced.
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Nick Mendes, mortgage technical manager at John Charcol, said of the changes: “HSBC’s decision to start the year with a reduction in mortgage rates across its product range is a welcome move for the housing market. Following the festive period, this change comes at a crucial time, as many potential homemovers start re-engaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.
“Today’s rate cuts span an extensive range of products, including options for existing residential customers switching, borrowing more, first-time buyers, homemovers, and even energy-efficient homes. These reductions, covering fixed terms from two to 10 years and LTVs of up to 95%, reflect HSBC’s efforts to remain competitive and [capture] a diverse range of customers. BTL investors and international clients are also included, widening the appeal.”
This week, Leeds Building Society and Halifax also began the new year with mortgage rate reductions.
