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HSBC and TSB change rates: "The mortgage market is a whirlwind of mixed signals right now"

ended 02. December 2024

Hot on the heels of Gen H announcing rate cuts of up to 0.25% for first-time buyers, HSBC has also announced it is cutting rates on selected mortgage products. Meanwhile, the mixed messages being sent to borrowers continue as TSB has announced that, from Tuesday 3 December, it is increasing rates on its 90-95% 2- and 5-year Fixed First Time Buyer and Home Mover 90%-95% products by 0.10% (screengrab below). It also says it is temporarily withdrawing its 3-year fixed 90-95% LTV residential products. Newspage asked brokers for their views on what's going on, below.

9 responses from the Newspage community

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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
HSBC are getting in the Christmas spirit being the first major lender announcing rate cuts for December. This is greatly needed to end the year on a positive note
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The mortgage market is a whirlwind of mixed signals right now. One minute rates are being slashed to lure first-time buyers, and the next, they're rising or products are vanishing altogether. This chaotic landscape is making it harder than ever for borrowers to find their footing, emphasising just how crucial expert guidance is in navigating these turbulent times.
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Ben Perks
Managing Director at Orchard Financial Advisers
Swap rates have reduced slightly over the weekend, which could lead to further reductions from lenders. But in the current environment, lenders are all over the place. With the positive reductions from Gen H and HSBC come increases from TSB. It's a hard market to call.
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Rohit Kohli
Director at The Mortgage Stop
The topsy-turvy work of mortgages continues as HSBC joins Gen H in reducing rates across a selection of their products. Meanwhile, TSB increases rates further on higher loan-to-value products making it that bit harder for first-time buyers. It's anyone's guess as to what lenders will do next!
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Craig Fish
Director at Lodestone Mortgages
The confusion on lender mortgage rates is going to leave many wondering if they had one too many drinks at the Christmas party. It certainly seems that those in charge of product design have. There is absolutely no consistency here considering swap rates are on a downward trajectory, so it must be related to end of year targets and workload management.
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Justin Moy
Managing Director at EHF Mortgages
Lenders are starting to pick and choose the markets they wish to feature in, especially where they have been strong in mortgage lending to those with smaller deposits. The regulator limits lender activity in these higher loan-to-value markets, so it will be more common to see banks adjust pricing to accommodate this requirement. Last week Nationwide adjusted criteria to limit this same exposure, while other lenders have increased rates to be less competitive. But to see some small cuts to their basic product ranges will be a welcome signal to the rest of the market as well as borrowers.
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Simon Bridgland
Broker at Charwin Private Clients
HSBC shows it loves the UK's mortgage borrowers, as it looks to stem the flow of money leaving borrowers' pockets. This easing of the pain which will be felt in January when credit card statements hit the doormat. Their reductions are helping both residential and buy to let customers across a range of loan to values and are sure to warm the hearts of those making plans in December. They come in stark contrast to the move by TSB, shouting Bah Humbug to first-time buyers with their decision to increase their rates.
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Elliott Culley
Director at Switch Mortgage Finance
Mortgage rates are quite difficult to predict right now, with some lenders appearing to be more confident in the current market than others. SWAP rates have settled since the Budget and have reduced slightly as well. This is good news as downward movement instils confidence in lenders and increases the chances of rate cuts. Other lenders may look to improve their current products to attract as much business as possible before the new year.
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Hannah Bashford
Director at Model Financial Solutions
Now we're in December you would be forgiven if you thought the lenders would settle down and concentrate on the festive season and giving their employees and the intermediaries some stability to have a relaxed end to the year, but no such luck. As we continue to ride the rollercoaster of ups and downs it seems HSBC are going for one last blast at winning business before the end of the year with TSB looking to slow down.