HSBC and TSB cut mortgage rates: "Lenders are scrambling for business before Budget uncertainty hits"
HSBC and TSB have announced mortgage rate cuts today with "lenders scrambling for business before Budget uncertainty hits".
Though swap rates have edged up slightly, both HSBC and TSB have announced rate cuts today, the latter by up to 0.1%.
TSB's three and five-year fixed rates on home purchases are reducing by 0.1%, while two and three-year fixed rates on remortgaging are reducing by 0.05%.
Its buy to let mortgages are also being reduced by up to 0.05%.
HSBC has not confirmed the amount it is cutting yet.
Brokers said there is a scramble for business before the Budget later this month.
Emma Jones, Managing Director at Whenthebanksaysno.co.uk, said: “Lenders cutting while swaps rates have edged up says one thing: they are keen to get lending. Borrowers should take note.
"After last week's pre-Budget Rachel Reeves speech, there is every chance this month could end on a very bleak note and rates could end up rising once again.”
Babek Ismayil, CEO at homebuying platform OneDome, said lenders are trying to get the market moving.
He added: "Demand has ebbed away as borrowers batten down the hatches ahead of this month's fiscal announcement and lenders need business.
“They're trying to light a fire under demand by bringing rates down, even if that means their margins take a hit. Either way, it's good news for borrowers and now could represent a good window of opportunity.”
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, agreed, adding: "Rate cuts from HSBC and TSB signal lenders scrambling for business before Budget uncertainty hits. With swap rates creeping up and just two weeks until potential fiscal shocks, this competitive window won't last long. Lock in a rate now whilst lenders are still scrapping for market share.
"Don't wait for perfect; secure good. If the Budget brings £40bn in tax rises without growth plans, these current rates will look like bargains. Contact your broker this week and move whilst lenders are still hungry for business. After 30th October, this pricing battle could reverse sharply."
Ranald Mitchell, Director at Norwich-based Charwin Mortgages, said lenders are jostling for business.
He continued: "Lenders are fighting tooth and nail for every mortgage right now with a few basis points here, a small cut there. It all signals a battle to keep business flowing in a jittery market. With the Budget looming and expectations that it’ll bring more pain than gain for households, lenders know cheaper borrowing costs are one of the few levers left to keep money moving.
“For borrowers, this is the time to act decisively, securing a deal while the competition is still driving rates down. If confidence takes another hit post-Budget, the lending landscape could look very different indeed. SWAP markets remain twitchy, and any knock to post-Budget confidence could easily send borrowing costs back the other way.”
Chris Schutrups, Founder at Southampton-based The Mortgage Hut, said he was encouraged by the news.
He added: "It’s encouraging to see lenders like HSBC and TSB pricing more competitively on Monday, clearly signalling their intent to win market share. Our view is that we’ll continue to see lenders competing on price in the coming weeks as they look to hit their lending targets for the year.
"If the upcoming Budget delivers positive economic news, that momentum could build further — ultimately benefiting borrowers and adding some much-needed confidence to the housing market."
