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HSBC rate cuts show "confidence in their view of the short term direction of travel"

Journalist: Justin Moy, Contributing Editor

ended 22. July 2024

And so begins another week of rate cuts. HSBC has set the tone for the market with a full repertoire of rate cuts for new and existing borrowers, starting from Tuesday 23rd July. Newspage asked brokers if we are due another set of rate cuts from the high street lenders this week, following on from previous weeks. Are these cuts from lenders another indication that base rate cuts are just around the corner? Their views are below.

11 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Great news to start the week with. The only hope is that this is not a range of cuts thinner than the skin on a custard. With lenders definitely stepping up over the summer months, some healthy competition is starting to push rates down a little whilst we wait for positive news from the Bank of England. It's time for the MPC to act just like HSBC.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Where HSBC goes other lenders tend to follow so this is likely to trigger more cuts this week. Lenders appear to believe a base rate cut is on the horizon, if not in August then not long after. Great news for borrowers.
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Ken James
Director at Contractor Mortgage Services
HSBC is saying we are open for business, roll up roll up. The sentiment among lenders is clearly that the base rate will come down, and their positive rate reductions echo this. There will be more cuts from other lenders this week as no one wants to be left behind as rates fall. Great news for existing clients and those looking to buy.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This will definitely stir up some competition within the big 6, which is superb news for a large number of borrowers. What a summer this is shaping up to be. Lenders seem to be pricing in a rate cut before the summer is out.
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Elliott Culley
Director at Switch Mortgage Finance
Further rate reductions this week from HSBC show signs of continued confidence in the market despite last week's inflation figures. The market in general has been sluggish but HSBC's actions may inject renewed enthusiasm into buyers. HSBC have been off the boil recently and will hope they can grab a bigger piece of the pie with this move.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
HSBC appear to have a recurring diary entry as they are reducing rates every week, which shows confidence in their view of the short term direction of travel regarding the base rate. Let's hope the Bank of England GPS doesn't take us all down a small and windy road to get there.
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Ben Perks
Managing Director at Orchard Financial Advisers
HSBC seem to have caught everyone else napping and are kicking the week off with a round of rate reductions. It's good to see this 'mini-rate war' rumbling on and HSBC making a move this morning will force other lenders to cut and compete.
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Dariusz Karpowicz
Director at Albion Financial Advice
These rate cuts from HSBC are very welcome and highly anticipated. It's clear that lenders decreasing rates is becoming a trend, and we can only hope there's a lot more to come. Now it's time for the Bank of England to follow this trend and start decreasing the base rate. If the high street lenders are showing confidence in the short-term direction of travel, it's a strong signal that better days might be ahead for borrowers. Let's keep the positive momentum going.
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Denni Tyson
Mortgage and Protection Advisor at Henchurch Lane Financial Services
I think this is the march towards the 1st August 2024 and a base rate reduction by the BoE. As always, it will now be a case of how the market responds and other lenders in the coming days.

It will be those clients that have taken a tracker style mortgage that will now be in a position to see fixed rate cuts and a potential base rate reduction.
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Robert Timm
Managing Director at Sunland Mortgages
We're all going on a summer holiday! On the first day of school holidays for many, HSBC kick off the holiday season with some nice reductions which will send many off into the sun in a very happy mood indeed, myself included!
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Ben Tadd
Director at Lucra Mortgages
A great start to the week for mortgage borrowers, with yet more good news announced from HSBC in the form of their product rates dropping once more, from tomorrow. The rate war in the market starts afresh again this week, with other lenders now inticed to react by slashing their rates in response, to ensure they stay in the game and compete for their slice of the pie in the lending market.