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HSBC cuts rates

ended 15. January 2024

HSBC has just announced it has cut residential mortgage rates (see below). The changes will come into effect from Tuesday 16th January. Newspage asked brokers for their views, bottom.

Summary of changes:
We have increased our cashback incentive offering for First Time Buyer customers at 95% LTV from £250, £350 and £500 across our two year fixed, three year fixed and five year fixed rates to £750, £750 and £1,000.

Existing residential customer switching

• 2 & 3 Year Fixed Fee Saver at 60%, 90% and 95% LTV decreased
• 2, 3 & 5 Year Fixed Standard at 60%, 80%, 85% and 90% LTV decreased
• 5 Year Fixed Fee Saver at 60%, 80%, 85%, 90% and 95% LTV decreased
• 5 Year Fixed Premier Exclusive at 60%, 80%, 85% and 90% LTV decreased


Existing residential customer borrowing more

• 2 & 3 Year Fixed Fee Saver at 60% and 90% LTV decreased
• 2 & 3 Year Fixed Standard at 60%, 80%, 85% and 90% LTV decreased
• 5 Year Fixed Fee Saver at 60%, 80%, 85% and 90% LTV decreased
• 5 Year Fixed Standard at 60%, 80%, 85% and 90% LTV decreased
• 5 Year Fixed Premier Exclusive at 60%, 80%, 85% and 90% LTV decreased
 

Residential First Time Buyer

• 2 & 3 Year Fixed Fee Saver at 90% and 95% LTV decreased
• 2 & 3 Year Fixed Standard at 80%, 85% and 90% LTV decreased
• 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85%, 90% and 95% LTV decreased
• 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV decreased
• 5 Year Fixed Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV decreased


Residential home mover

• 2 & 3 Year Fixed Fee Saver at 90% and 95% LTV decreased
• 2 & 3 Year Fixed Standard at 80%, 85% and 90% LTV decreased
• 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85%, 90% and 95% LTV decreased
• 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV decreased
• 5 Year Fixed Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV decreased


International Residential 

• 5 Year Fixed Fee Saver at 60%, 70% and 75% LTV decreased
• 5 Year Fixed Standard at 60%, 70% and 75% LTV decreased
• 5 Year Fixed Premier Exclusive at 60%, 70% and 75% LTV decreased
There are no changes to any other interest rates at this time.

16 responses from the Newspage community

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Editor
Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
What a great start to the week. The only high-street lender that hasn't repriced is Nationwide currently. Swap rates are still edging down so the reductions look set to continue. It's blue Monday today but borrowers will be feeling anything but.
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Ben Perks
Managing Director at Orchard Financial Advisers
It's great to see another round of rate reduction from HSBC, all the more so ahead of this week's inflation print. HSBC have made several cuts in quick succession so it shows a real appetite to lend and is fantastic news for the consumer and the wider property market. Let's hope more lenders show this level of eagerness to lend. It's always great to see a bit of healthy competition on rates.
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Elliott Culley
Director at Switch Mortgage Finance
As each day passes, mortgage lenders are becoming more confident in the stability of the current market. It wasn't that long ago that we saw lenders only dipping their toe into rate reductions, but now we are seeing some lenders dive head-first and offering larger reductions. HSBC would have seen the competitiveness of some of their bigger rivals and knew they had to act. The new rates for 2-year fixed rates seem more targeted as they are concentrating on higher LTVs. Don't be surprised if these rates become the most competitive on the market.
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Darryl Dhoffer
Founder at The Mortgage Geezer
HSBC are masters of the muted markdown. The fanfare of lower rates is always welcome, but why not trumpet their reductions from the rooftops as other lenders do? To announce a reduction without the changes invites scrutiny. The sooner we get the rates, the sooner we can communicate with the consumers, which is better in the new era of financial transparency.
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Rohit Kohli
Director at The Mortgage Stop
This is excellent news with which to start the week. HSBC clearly want to lend and are not hanging around for the inflation stats due later in the week to lay down their statement of intent. We're now each trying to second guess which lender will be next.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The relentless race for the top spot continues without hesitation, this time HSBC coming out with further rate cuts across their entire range. Add to the mix varying levels of cashback for first-time buyers, and this is a bank that means business. With property prices rebounding, and mortgage rates reducing, anyone considering a home purchase would be wise to get a move on.
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Simon Bridgland
Director at Charwin Private Clients
And we're off to the races once again, this week, straight out of the gates is HSBC. Showing some promise for the higher loan to values with the increased cashback for first-time buyers. Fantastic that it's an amount which will certainly prick up the ears of any cash-strapped colts. Let's hope the rates at the higher loan to values don't turn a potential Arabian thoroughbred into a gelding or worse a donkey.
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Ken James
Director at Contractor Mortgage Services
HSBC are fighting tooth and nail for business. This is another wave of rate cuts that will inject further competition into the mortgage market. Brace for more announcements this week as other lenders digest these cuts.
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Premium
Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
It's fantastic to witness another round of rate reductions from HSBC, especially with this week's inflation print looming. The successive cuts from HSBC indicate a strong willingness to lend, benefiting both consumers and the broader property market. The hope is that more lenders will exhibit a similar eagerness to lend, fostering healthy competition in rates, much like the trend observed in recent months where rate adjustments from one major lender quickly prompted others to follow suit.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
Monday morning and yet more fantastic mortgage news. HSBC is once again at the forefront of rate cuts, with the added bonus of a 24-hour notice period. Hats off HSBC. It's now intriguing to see how swiftly other major lenders will respond to this latest development in the ongoing rate war.
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Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
This is a great start to the new week, and is the second round of rate cuts from HSBC in less than two weeks. It will provide a welcome boost to the housing market, and with first-time buyers returning into the housing market, this ongoing rate attrition will be welcomed with open arms. It will be interesting to see how the rest of the lenders follow suit. Over the past few months, when one of the big lenders has reduced rates, the others all followed very quickly.
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Graham Cox
Director at Bridging Hub
After slashing rates on January 4th, HSBC continues to price aggressively with these further reductions, plus enhanced mortgage cashback of up to £1,000 for first-time buyers. Lenders are falling over themselves to stimulate demand at present, which is great news for anyone looking to buy a home.
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Peter Stamford
Mortgage Expert at Stamford Home Finance
And away we go on another week of rate cuts. HSBC leading from the front as they have done so often recently. More great news for home movers and remortgagers alike.
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Charles Breen
Founder at C B
Are we within touching distance of 2-year products for higher LTVs such as 90% starting with a 3? I think we are. The more high street lenders that keep reducing the better, especially for all those who are coming off of their 1% mortgage products. Moves like this will help prevent a whole cohort of borrowers from becoming stuck with their current lenders and becoming mortgage prisoners by default. Is this HSBC foreshadowing what the Bank of England are likely to do? Are they reacting to whispers and rumours on Threadneedle Street? Trying to create a bit of a market buzz before the other lenders possibly jump on the band wagon in the coming days?
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James Bull
Mortgage Broker at JB Mortgages
Great to see HSBC leading the way with mortgage rate cuts. This can only add to the feel-good factor creeping in as we look forward to 2024 with increasing optimism.
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Gary Bush
Financial Adviser at MortgageShop.com
HSBC has come out again fighting with lower fixed mortgage rates and tweaking, in the favor of applicants, the terms of their deals. The rate war rages on and we expect the next salvo to be unveiled by HSBC's competitors shortly - this is all great news for struggling households.