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Halloween treat rather than trick from HSBC

ended 31. October 2023

HSBC has this morning announced that, with effect from Wednesday 1st November, it will be making a number of changes to its residential and Buy to Let (BTL) mortgage product ranges (see screengrab, below).

The lender also announced it has reintroduced its 2 Year Fixed Fee Saver offering for UK Residential First Time Buyer and Home Mover customers at 95% LTV. These products also have a cashback incentive of £250.

Brokers welcomed the changes. According to Ranald Mitchell, director at Norwich-based Charwin Private Clients: “This is more good news for mortgage borrowers, with HSBC being the latest to make their move on rates. The widespread lowering of rates across their range shows their intent to stay at the cutting edge of mortgage rate pricing. Lenders are gearing up to win more business so expect further rate reductions from others, a relaxation of lending criteria and more innovation with product design.”

Unable to help himself, Steven Hargreaves, mortgage and protection adviser at The Mortgage Co, said this of the news: "We have a treat on Halloween rather than a trick from HSBC. Rate cuts have seemed a bit quieter this last week or so, so let's hope this kickstarts the rate reductions again."

Also flowing with the Halloween gags was Peter Stamford, director at Alston-based broker, Moor Mortgages: "HSBC is giving us a treat this Halloween, slashing mortgage rates. If you're house-hunting, it's no trick: now's a spooktacular time to secure a lower rate."

Meanwhile, Rohit Kohli, operations director at The Mortgage Stop, said this move from HSBC may reflect the fact lenders expect another rate pause from the Bank of England: “This is very welcome from HSBC and the housing market certainly needs more encouragement to get back on track. I think this indicates that lenders are expecting another hold decision from the Bank of England, which certainly makes sense given some of the dire numbers seen this week in relation to the housing market.”

Kohli's views were shared by Ben Tadd, director at Chippenham- and Bath-based broker, Lucra Mortgages: “Any reductions in mortgage rates are a positive for mortgage borrowers and these latest cuts again act as a further small win for both existing homeowners and buy-to-let landlords. First-time buyers and next-time residential buyers, especially at higher loan-to-values, will also benefit. The mini-rate war continues and this adds further fuel to the likelihood that lenders are expecting a consecutive base rate hold.”

Gary Boakes, director at Salisbury-based broker, Verve Financial, added: “This is welcome and positive news two days before the next MPC meeting. Rate reductions have certainly slowed during the past few weeks with swap rates being fairly stable, but with HSBC making rate reductions this is usually followed by the other big lenders making similar reductions. Could this mean another positive meeting on Thursday with the base rate staying at 5.25%? Let's hope so.”

Meanwhile, Elliott Culley, director at Switch Mortgage Finance, was surprised the move hadn't come sooner: “I'm not surprised by this move from HSBC, as they have been off the pace recently compared to other lenders so this adjustment is likely to make them more competitive in the current market, which is good news for borrowers. The only surprise was this didn't happen sooner.”

But while welcoming them, Darryl Dhoffer, director at Bedford-based broker, The Mortgage Expert, said the cuts could come too late to save 2023: "These cuts and changes show that HSBC is committed to supporting borrowers and helping them to find the right mortgage product for their needs. However, these changes, along with those of other leading banks and building societies, could be too little too late to save the mortgage and property market in 2023."

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10 responses from the Newspage community

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Rohit Kohli
Director at The Mortgage Stop
This is very welcome from HSBC and the housing market certainly needs more encouragement to get back on track. I think this indicates that lenders are expecting another hold decision from the Bank of England, which I certainly think makes sense given some of the dire numbers seen this week in relation to the housing market.
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Ranald Mitchell
Director at Charwin Mortgages
More good news for mortgage borrowers, with HSBC being the latest to make their move on rates. The widespread lowering of rates across their range shows their intent to stay at the cutting edge of mortgage rate pricing. Lenders are gearing up to win more business so expect further rate reductions from others, a relaxation of lending criteria and more innovation with product design.
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Elliott Culley
Director at Switch Mortgage Finance
I'm not surprised by this move from HSBC, as they have been off the pace recently compared to other lenders so this adjustment is likely to make them more competitive in the current market, which is good news for borrowers. The only surprise was this didn't happen sooner.
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Justin Moy
Managing Director at EHF Mortgages
Competition is certainly driving the cost of mortgages down, and these latest rate cuts from HSBC are certainly looking to spook the market this Halloween. With rates still creeping down, the cauldron of high-street lenders will need more than a few tricks or face the wrath of borrowers.
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Jack Tutton
Director at SJ Mortgages
HSBC reducing their rates is hopefully a sign of further reductions in the market to come. Swap rates have been reducing for a while now, so the hope for many would be that other lenders will review their products and ease the pain a little for anyone whose mortgage is due for renewal.
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Peter Stamford
Mortgage Expert at Stamford Home Finance
HSBC's giving us a treat this Halloween, slashing mortgage rates. If you're house-hunting, it's no trick: now's a spooktacular time to secure a lower rate.
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Darryl Dhoffer
Founder at The Mortgage Geezer
These cuts and changes show that HSBC is committed to supporting borrowers and helping them to find the right mortgage product for their needs. The 95% loan-to-value mortgage for first-time buyers and home movers is a good move, as it will make it easier for borrowers to buy a home with a smaller deposit, while the £250 cashback incentive is a nice bonus for borrowers. The reductions in buy-to-let mortgage rates are also positive news for landlords. However, these changes, along with those of other leading banks and building societies, could be too little too late to save the mortgage and property market in 2023.
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Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
We have a treat on Halloween rather than a trick from HSBC. Rate cuts have seemed a bit quieter this last week or so, so let's hope this kickstarts the rate reductions again."
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Gary Boakes
Director at Verve Financial
This is welcome and positive news two days before the next MPC meeting. Rate reductions have certainly slowed during the past few weeks with swap rates being fairly stable, but with HSBC making rate reductions this is usually followed by the other big lenders making similar reductions. Could this mean another positive meeting on Thursday with the base rate staying at 5.25%? Let's hope so.
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Ben Tadd
Director at Lucra Mortgages
Any reductions in mortgage rates are a positive for mortgage borrowers right now and these latest cuts again act as a further small win for both existing homeowners and buy-to-let landlords. First-time buyers and next-time residential buyers, especially at higher loan-to-values, will also benefit. The mini-rate war continues and this adds further fuel to the likelihood that lenders are expecting a consecutive base rate hold.