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HSBC joins Barclays in dropping mortgage rates: "Finally, some positive news for borrowers"

ended 23. October 2025

HSBC has joined Barclays in cutting mortgage rates as brokers say it's “finally some positive news for borrowers”.

Although HSBC haven't announced the exact level of cuts, they are extensively decreasing rates across their residential products at every loan-to-value (LTV).

This comes as Barclays announced several fixed-rate cuts for those looking to move home or buy their first home, by up to 0.1%. 

Brokers hailed the news which they say could be down to yesterday's lower-than-expected Consumer Price Index (CPI) of 3.8%.

Jack Tutton, Director at Fareham-based SJ Mortgages, said the economic outlook for the UK was looking slightly better and that was filtering through to rates.

He added: "Finally, some positive news for mortgage holders after what has been a lot of doom and gloom with mortgage rates on the increase. Financial markets have improved significantly in the last couple of weeks, these improvements have allowed for both HSBC and Barclays to make these positive changes with the hope that the rest of the market follows. 

“With the budget around the corner, it will be interesting to see how brave lenders are with any changes that they make to their products ahead of the Chancellor making her statement.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth Ltd, hailed it as “brilliant news”.

He added: “More treat and less trick for borrowers this morning, as both Barclays and HSBC announce that they are cutting their mortgage rates. Although HSBC haven't announced the exact level of cuts, they are extensively decreasing rates across their residential products at every loan-to-value. 

"This is brilliant news for a stupified property market hanging on for the Autumn Budget, to hopefully kickstart some activity.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said borrowers should lock in rates before the Budget next month.

He continued: “I suspect this will be similar to Barclays' move, with a small reduction in rates, but it's more about the change of direction and improvements in product pricing we will see over the coming weeks. 

"Grabbing a new deal before the Budget is certainly a narrative becoming more popular for those with expiring deals.”

Elliott Culley, Director at Hayling Island-based Switch Mortgage Finance, also looked forward to the Budget.

He added: “The bleak outlook to the economy and the better than expected inflation data has led to improving swap rates over the last week. Lenders are starting to react to this. 

"It's unlikely we will see any large reductions in rates yet as mortgage lenders will want to see if the new swap rates are here to stay or if this is just a brief pause before the Autumn Budget is upon us.”

Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said: “As borrowers carve pumpkins, lenders are carving up rates. This is welcome news and hopefully a sign of things to come. 

"Rates have been on the rise over the last few weeks, so it would be great to see them reduce as we approach the end of the year.”

6 responses from the Newspage community

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Ben Perks
Managing Director at Orchard Financial Advisers
As borrowers carve pumpkins, lenders are carving up rates. This is welcome news and hopefully a sign of things to come. Rates have been on the rise over the last few weeks, so it would be great to see them reduce as we approach the end of the year.
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Editor
David Stirling
Independent Financial Adviser at Mint Wealth
More treat and less trick for borrowers this morning, as both Barclays and HSBC announce that they are cutting their mortgage rates. Although HSBC haven't announced the exact level of cuts, they are extensively deceasing rates across their residential products at every loan-to-value. This is brilliant news for a stupified property market hanging on for the Autumn Budget, to hopefully kickstart some activity.
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Editor
Justin Moy
Managing Director at EHF Mortgages
I suspect this will be similar to Barclays' move, with a small reduction in rates, but it's more about the change of direction and improvements in product pricing we will see over the coming weeks. Grabbing a new deal before the Budget is certainly a narrative becoming more popular for those with expiring deals.
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Editor
Jack Tutton
Director at SJ Mortgages
Finally, some positive news for mortgage holders after what has been a lot of doom and gloom with mortgages rates on the increase. Financial markets have improved significantly in the last couple of weeks, these improvements have allowed for both HSBC and Barclays to make these positive changes with the hope that the rest of the market follows. With the budget around the corner, it will be interesting to see how brave lenders are with any changes that they make to their products ahead of the Chancellor making her statement.
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Editor
Dariusz Karpowicz
Director at Albion Financial Advice
Whilst borrowers have been carving pumpkins, lenders are finally carving up rates. HSBC's decision to slash rates across all loan-to-value brackets follows Barclays' cuts of up to 0.1%, marking a welcome shift after weeks of rising costs.
This rate reduction comes at a crucial time. If you're facing a mortgage renewal soon, consider locking in a deal before the Autumn Budget arrives. Other lenders may follow suit, but don't wait. The property market has been waiting for this spark of activity, and better-than-expected inflation figures suggest more positive changes ahead.
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Elliott Culley
Director at Switch Mortgage Finance
The bleak outlook to the economy and the better than expected infaltion data has led to improving swap rates over the last week. Mortgages lenders are starting to react to this. Its unlikely we will see any large reductions in rates yet as mortgage lenders will want to see if the new swap rates are here to stay or if this is just a brief pause before the autumn budget is upon us.