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HSBC cuts rates: "Temperatures may be on the rise but rates are thankfully on their way down"

Journalist: Justin Moy, Contributing Editor

ended 25. June 2024

HSBC has announced a wide range of rate cuts this morning as a reaction to swap rate improvements. Though international rates are bucking the rate cutting cycle, the rest of the product range will see improvements from the 26th June. Newspage asked brokers for their views, below.

13 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
HSBC has ignited a sizzling summer of savings for mortgage holders with these latest rate cuts, following Barclays' lead. As other lenders join the trend, homeowners may finally see the relief they've been seeking, though a broader market shift is still needed to truly spark the housing market. Barbies will be burning and beers being cracked open this evening and HSBC's rate cuts are another reason to hang out the bunting.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Summer is here and the sun is finally shining over borrowers, who have been in the swap rate shade for too long. Things are looking a lot more optimistic and if that first rate cut comes in August, all bets are off.
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Justin Moy
Managing Director at EHF Mortgages
This is a great reaction from HSBC this morning, and a possible response to Barclays' cuts announced yesterday. Rate cuts across the majority of their range will be welcome by all types of borrower, and will accelerate the reaction from other High Street lenders. This mini-heatwave is like the pied-piper of property: enquiries have tripled in the past few days and these rate reductions only add a drop of petrol to that positive mood.
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Andrew Montlake
Managing Director at Coreco
Given the recent fall in inflation and ease in SWAP rates, these reductions could be the starting pistol to a campaign of "Summer Sizzlers" from lenders. They will be keen to kickstart a market lethargic from the election, hot weather and football and I expect to see other lenders following suit. For buyers, this summer period could be a good time to bag a deal before the honeymoon period of a new Government kicks in.
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Michelle Lawson
Director at Lawson Financial
Temperatures may be on the rise at last for the British summer, but rates are thankfully on their way down. This announcement from HSBC, following Barclays yesterday, is great news for the UK's beleaguered borrowers. More lenders are now sure to follow suit.
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Adam Stiles
Managing Director at Helix Financial Partners
The markets are reacting well to recent macroeconomic information with SWAPS moving downwards. This in turn has created confidence from lenders to decrease their rates. This move from HSBC is a great signal to the market from a huge lender and we hope to see a lot more follow suit.
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Ben Perks
Managing Director at Orchard Financial Advisers
Rates are starting to go down like a cold drink in the sunshine. As swaps continue to trickle downward, lenders are starting to look at releasing more favourable products. It is a welcome sight and one that we I'm sure we'll see more of as other lenders join in. We need this pattern to continue over the coming months, then an August base rate reduction could kickstart the property market going into the final quarter of the year.
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Rohit Kohli
Director at The Mortgage Stop
As the mercury climbs during this summer heatwave, lenders are offering a welcome cooldown to borrowers with reduced interest rates. HSBC offers a refreshing selection of reductions across its fixed rates, which is great news given Barclays taking the lead yesterday. We're hoping this will help would-be buyers and sellers decide that a summer move is as enticing as a seaside holiday, making it the perfect time to dive into the property market and secure a deal at these lower rates.
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Craig Fish
Director at Lodestone Mortgages
The second lender of the Big Six announces mortgage rate reductions as a result of positive swap rate movements. It's good to see lenders passing on this positive news to borrowers immediately. Much like the British Summer, the touchpaper has been lit and more will likely follow this week, as the heat of competition finally starts to rise in the mortgage market.
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Riz Malik
Independent Financial Adviser at R3 Wealth
HSBC is looking to hoover up business with an array of rate reductions. Even though we didn't get the decision we wanted from Threadneedle Street, the market has spoken and more lenders will follow.
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Dariusz Karpowicz
Director at Albion Financial Advice
A very positive news in gloomy times. HSBC has announced a wide range of rate cuts this morning, responding to improvements in swap rates. This move could signal a shift in the market, and with swap rates improving, we might see more lenders following suit and decreasing their rates. This is a welcome relief for borrowers who have been feeling the squeeze of higher rates. As temperatures rise, it’s refreshing to see mortgage rates finally heading in the opposite direction. Lower rates can help make homeownership more accessible and provide much-needed financial relief for many. Let’s hope this is the beginning of a trend that will continue to benefit borrowers and stabilise the property market in the coming months.
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Ken James
Director at Contractor Mortgage Services
HSBC and Barclays are the first to throw down the Gauntlet this week and start fighting to win the spoils of the rate war. With swap rates easing the pressure on lenders funding, we are looking to see the benefits filtering through to the public. It is however interesting that none of these soon to be released rates from HSBC have actual percentages shown only that the rates are to be cut, are they concerned that by releasing these numbers other lenders may try undercut them, or are they baiting the public’s interest and will disappoint with low rate cuts that barely scratch the surface, it is an interesting way to do things let’s hope it does not backfire on them and that the cuts are significant and meaningful.
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Tracey Dixon
Owner/Broker at Pure Mortgage and Protection
HSBC cuts mortgage rates following Barclays, which is more good news for borrowers. This move is likely to trigger similar reductions from other lenders, further boosting the property market. Enquiries have already increased in recent days, and these rate cuts will only add fuel to the fire.