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HSBC announces rate cuts across residential and buy-to-let range

ended 04. October 2023

HSBC has this morning announced that, with effect from Thursday 5th October, it will be making a raft of changes to its residential and Buy to Let (BTL) mortgage product ranges (see screengrab, bottom).

The lender also said: “We have removed our cashback incentive offering across a selection of 2- and 3-year fixed rates at 60%, 70% and 75% LTV for UK Residential First Time Buyer and Home Mover customers until further notice. The incentive remains available across higher LTVs for these customers.”

Brokers welcomed the news but suggested lenders are starting to appear like global tech giants in the way they are revealing their new products.

Darryl Dhoffer, founder of Bedford-based The Mortgage Expert, was left scratching his head: “Lenders today are increasingly resembling Apple. They tell us they're reducing rates without actually telling us what the rates are for 24 hours. It won't be long before there is a live event much like you see in Silicon Valley. Either way, more rate cuts are welcome, and it's a sure sign that lenders are now well and truly clambering to fill their depleted loan books.”

His views were shared by Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages: “While it is great to know rates will be reduced, it would be much more helpful to know by how much. Unless of course, they will decide that tomorrow after seeing how their competitors react to the news.”

Meanwhile Bob Singh of Uxbridge-based mortgage broker, Chess Mortgages, commented: “It’s the fourth quarter and it’s hit-targets time for lenders. We have seen wholesale cuts in pricing notably on 5-year fixed rates. This is as much as we can expect to see this year unless the base rate takes a dive due to recessionary fears which, based on what’s happening across the pond, is quite likely. Bearing in mind lenders rarely lose money on fixed rates, this is a clear sign that rates could fall further in 2024."

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3 responses from the Newspage community

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Darryl Dhoffer
Founder at The Mortgage Geezer
Lenders today are increasingly resembling Apple. They tell us they're reducing rates without actually telling us what the rates are for 24 hours. It won't be long before there is a live event much like you see in Silicon Valley. Either way, more rate cuts are welcome, and it's a sure sign that lenders are now well and truly clambering to fill their depleted loan books.
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Editor
Bob Singh
Founder at Chess Mortgages
It’s the fourth quarter and it’s hit-targets time for lenders. We have seen wholesale cuts in pricing notably on 5-year fixed rates. This is as much as we can expect to see this year unless the base rate takes a dive due to recessionary fears which, based on what’s happening across the pond, is quite likely. Bearing in mind lenders rarely lose money on fixed rates, this is a clear sign that rates could fall further in 2024. All eyes on the Tory conference for any signs of a revival in fortunes for builders and the property market.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
While it is great to know rates will be reduced, it would be much more helpful to know by how much. Unless of course, they will decide that tomorrow after seeing how their competitors react to the news.