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"Disappointing start to the week" as HSBC hikes rates

ended 03. June 2024

HSBC today announced wholesale rate hikes across its residential and Buy to Let (BTL) mortgage product ranges. The new rates will come into effect tomorrow, 4th June. Newspage asked brokers for their thoughts, below.

9 responses from the Newspage community

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Ranald Mitchell
Director at Charwin Mortgages
Just another manic Monday in the chaotic world of mortgage brokers and their beleaguered clients as HSBC pushes rates in the wrong direction. The dreaded 'higher for longer' scenario is no longer a mere notion: it's the harsh reality for many. It looks like these elevated rates are here to stay for the foreseeable future. Mortgage holders must now brace themselves and adapt to this new, unforgiving mortgage world order. Time for a base rate cut.
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Justin Moy
Managing Director at EHF Mortgages
For borrowers, this is an unfortunate start to both the week and the month. Many borrowers currently renewing their mortgage deal are seeing rates increase yet again. Meanwhile, brokers will be queueing for hours on the HSBC website as capacity will be challenged, and the panic on increasing rates sets off again.
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David Stirling
Independent Financial Advisor at Mint Mortgages & Protection
We can now expect more awkward conversations with clients who have read that rates are coming down and inflation is under control. HSBC have been fairly competitive recently so the hope is that they just need to turn the tap off a little to catch up and this isn't an upward trend that will continue into the summer period.
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Ben Perks
Managing Director at Orchard Financial Advisers
HSBC are bumping up their interest rates this week in a blow to borrowers. We had hoped that we would start to see rates falling this month, but June has gotten off to a bit of a stinker with this announcement paving the way for other lenders to join in and increase. If other lenders start to increase, this should pile more pressure on the Bank of England in its upcoming MPC meeting.
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Michelle Lawson
Director at Lawson Financial
HSBC first out of the traps with an increase. It's too early to say if this is market- or service-related. The rates are up and down quicker than a pogo stick at the moment and adding to borrower confusion. This isn't great for consumer confidence.
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Elliott Culley
Director at Switch Mortgage Finance
Uncertainty is the kryptonite of mortgage rates and right now we have this in abundance. Inflation is only one of many factors that impacts which way rates are headed. A general election and fears inflation may increase in the winter are just two examples of the uncertainty we are currently facing. This all leads to the yo-yoying we are witnessing in mortgage rates at the moment.
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Simon Bridgland
Director at Charwin Private Clients
HSBC is one of several lenders to already have announced changes this week. Even with the higher rates on offer, I would not suggest waiting in the hope of a drop any time soon. My advice to borrowers is take control of the situation and start the process of arranging a new deal as early as possible, secure a rate and, if a better one materialises, change to it. Those seeking a new deal now will feel the pinch for the next few years as rates nudge their way northwards.
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Robert Timm
Managing Director at Sunland Mortgages
Disappointing start to the week, but perhaps driven by service levels. HSBC have been high up the tables for lowest rates for a few weeks and their service levels have been getting worse. This will hopefully bring some control before traditional busy periods.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Mortgage rates continue to yo-yo across the industry as uncertainty on rates remains. The market knows they are coming down, but getting a consensus on when the cuts will start and how far they will go is proving difficult, with conflicting financial data coming out of many major economies. As a market leader on rates, HSBC will have filled their boots, so they may have inched up their rates to slow down inflows as a precautionary step.