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HSBC follows Santander and TSB in cutting rates

ended 16. April 2026

HSBC, one of the UK's biggest lenders, has followed Santander and TSB in announcing rate cuts this week. The exact changes will be announced and go live tomorrow. Is this more evidence that we are past the peak of the current rate cycle, or do you think one Truth Social Post or development in the Middle East could easily send rates up again? Also, is there a possibility that once rates start to slide, would-be buyers will delay their transactions waiting for cheaper money (and ultimately paying more for their property if demand starts to rally again)? Any thoughts on these latest cuts from HSBC and what they say about the mortgage market, and your views on the trajectory of rates, send them over ASAP — as this story is being written NOW.

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9 responses from the Newspage community

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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Its hard to get overly excited about rate drops given the current volatility in the market as todays drops may well be tomorrows rate rises as they are quickly pulled again. What the market is looking for more than short term relief of rate reductions is some stability for some sustained rate reductions that are around long enough to help borrowers.
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Louis Mason
Content and Communications Director at Oportfolio Mortgages
If this isn't a positive signal, then I don't know what is. The market clearly wants to believe we’re past the peak.

But let’s not get carried away. Mortgage rates are still at the mercy of global drama. One geopolitical wobble or surprise inflation print and lenders will reprice faster than you can refresh your browser.

As for buyers holding out for cheaper deals, that rarely ends well. The irony is the moment rates dip, confidence returns, competition heats up, and suddenly you’re saving 0.2% on your mortgage but paying 5% more for the property.
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Editor
David Stirling
Independent Financial Adviser at Mint Wealth
HSBC piling in behind Santander and TSB is good news, but don't pop the champagne yet. Swap rates have eased and lenders are feeling brave enough to reprice, but one bad headline out of Tehran could unwind all of it before the week is out. If you're sat on your hands waiting for rates to bottom out, don't.
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Michelle Lawson
Director at Lawson Financial
This is hard to tell if it is a positive turn as it is too early days and the market is still volatile but we will take it!
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Editor
Harry Goodliffe
Director at HTG Mortgages
HSBC joining the rate-cutting trend adds weight to the idea that we may be past the peak, but it’s far from a done deal. Lenders are reacting to improving swap rates and competition as much as any clear shift in the wider outlook, and that can turn quickly if global events scare markets again. So yes, the direction of travel looks better, but this still feels fragile. Rates may be easing, but it wouldn’t take much to reverse this mood.
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Platinum
Elliott Culley
Director at Switch Mortgage Finance
Mortgage lenders are starting to reduce their interest rates as there are some tentative signs that we may be over the peak. However, these reductions in rates are only going to be small as lenders will not want to get their fingers burnt in the current volatile market and have to backtrack on these reductions.
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Premium
Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
HSBC following Santander and TSB with rate cuts does add to the feeling that we are at or very close to the peak, but I do not think the market is fully settled yet.
Lenders are still moving cautiously. These cuts are positive, but they are small and measured, which shows there is still a lot of uncertainty. It would not take much, whether that is inflation data or something happening globally, for rates to move back up again.
What we really need now is some consistency.
It is a positive step, but it still feels like we are in a transition rather than a fully settled downward trend.
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Premium
Gaurav Shukla
CEO at Home Me Mortgages
Cuts from HSBC, Santander and TSB are encouraging. Markets can change quickly and we are still at the mercy of external shocks, even something from Donald Trump. Buyers have been cautious after recent increases, but this could bring them back. If rates ease further, demand will return quickly. Waiting for the perfect rate often costs more than acting at the right time.
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Omer Mehmet
Managing Director at Trinity Finance
Although we have yet to see the actual size of the reductions, another major lender cutting rates is a step in the right direction. But events in the Middle East remain highly fluid and so it's too early to say that rates have peaked. But any cuts are welcome.