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HSBC cuts rates across the board as rollercoaster continues

ended 21. February 2025

HSBC has announced it is cutting residential and buy-to-let rates across the board from Monday 24th February. The exact rates are not yet known. It's been an unpredictable market following the inflation rise on Wednesday, with swaps rising, and some lenders upping their rates, others cutting them. Newspage asked brokers and mortgage market experts for their views on what's going on, below.

9 responses from the Newspage community

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Jack Tutton
Director at SJ Mortgages
This is a strong move by HSBC to cut rates and show belief in the market, especially after the worse than expected inflation news on Wednesday. It is proving very difficult for mortgage holders to decide what to do with what is for most their biggest monthly outgoing, and all the mixed news and changing rates compound this issue. We have been advising clients to secure a new deal at their earliest opportunity while keeping it under constant review. The vast majority of lenders are willing to consider amending a rate should they improve but will not pass any increases on should a product have been secured.
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Daniel Hobbs
CEO at New Leaf Distribution
It's been another volatile week in the mortgage market following the higher than expected inflation number. However, the fact big lenders are continuing to shave their rates may imply they believe base rate cuts are coming, even if they don't come at the next meeting of the Bank of England's Monetary Policy Committee.
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Elliott Culley
Director at Switch Mortgage Finance
As a mortgage adviser, it has been a challenge to monitor the differing opinion of lenders currently. So it would be almost impossible for borrowers to be able to navigate the ever-changing landscape. Some have taken a less risky approach and increased rates in the wake of higher swap rates. Other lenders have decided to reduce their rates, possibly as they had more margin to play with. Next week will likely bring more changes as the market remains volatile.
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Justin Moy
Managing Director at EHF Mortgages
It's great to see yet another High Street lender cut mortgage rates, especially with Swap rates, which fixed rate mortgages are priced off, creeping up this week on the back of the worsening inflation figures. This suggests lenders continue to believe the long-term plan will involve base rate cuts in 2025. As ever, the journey to these improvements will be fraught with bumps and obstacles along the way. Borrowers have to be proactive with their broker to capture the best options before their renewal is due.
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David Stirling
Independent Financial Adviser at Mint Wealth
HSBC has given us something to look forward to this weekend, announcing that they will be reducing their rates starting Monday. While the exact details of these reductions haven't been revealed yet, it's always a positive sign when rates are heading in the right direction for borrowers. Booking rates early is a smart move, as it often allows borrowers to take advantage of even lower rates if they become available before their completion. Any downward momentum is certainly a win for those looking to borrow.
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Simon Bridgland
Broker at Charwin Private Clients
HSBCs decision to cut rates from this coming Monday is a sure sign of further confidence in light of the better than expected retail figures in January. Brokers and borrowers are hoping for some further bank base rate cuts throughout this year and it seems as if HSBC believe it could happen. Confidence is a major driver of the property market and if lenders hold their nerve and give the consumer what they are asking for it could snowball. I would expect to see further fixed rate cuts announced over the next few days from other major banks.
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Ben Perks
Managing Director at Orchard Financial Advisers
Classy timing from HSBC who allow existing customers to product switch a few days before the end of the month. So these reductions will benefit many borrowers. A lender of HSBC's stature reducing will also give confidence to the mortgage market and get rates back on the downward track.
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Dariusz Karpowicz
Director at Albion Financial Advice
Just when mortgage holders thought they had the market figured out, HSBC throws another curveball into the mix. The banking giant's decision to slash rates across both residential and buy-to-let mortgages from Monday comes as a refreshing splash of good news in what's been a rather turbulent week for rate-watchers. While some lenders have been playing it cautious after Wednesday's inflation surprise, hiking their rates faster than a champion pole-vaulter, HSBC seems to be taking a more optimistic view of the future. Brokers are suggesting this could signal the bank's confidence in potential base rate cuts later in 2025, though as with anything in the current market, it's about as predictable as British weather. The smart money, according to mortgage advisers, is on securing rates early while keeping options open for any further improvements - a bit like having your cake and eating it too, but with considerably more paperwork.
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Iain Swatton
Director at Exemplar Financial Services
HSBC’s decision to cut mortgage rates comes against a backdrop of economic uncertainty, with inflation ticking up and questions lingering over the Bank of England’s next move. While market expectations for a base rate cut have been pushed back, lenders appear to be making their own adjustments, keeping competition alive. With borrowers facing a mix of signals—rising inflation on one hand and fluctuating mortgage rates on the other—this move offers a glimmer of positivity in an otherwise unpredictable landscape.