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HSBC announces widespread rate cuts - brokers brace for busy end to year

ended 14. November 2023

HSBC has just announced it is cutting rates from tomorrow, 15 November (see screengrab, bottom). Brokers welcomed the move, saying the lender means business and are bracing themselves for a busy end to the year as activity levels pick up.

According to Ranald Mitchell, director at Norwich-based Charwin Private Clients: “With inflation coming down, it is only a matter of time before someone takes the plunge with a significant rate announcement, and HSBC is a contender. Today, they have announced widespread rate cuts across their range so all eyes are on the grand unveil tomorrow. Let's hope they mean business.”

Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages, was also upbeat: “Further rate reductions from HSBC are greatly appreciated, especially those in the higher loan-to-value brackets. This should kick-start another round of rate reductions, some before and some after the expected good news on inflation due this week. With each day that passes, there are more reasons to be positive in the mortgage market.”

Craig Fish, director at London-based broker, Lodestone Mortgages & Protection, also welcomed the news: “While we don't yet know the specifics, these rate cuts from HSBC show they are out to do business. Let's hope there is some focus on those who wish to remortgage and on those borrowing at higher loan-to-values. It does look like the rate war is on, and with the high expectation of positive inflation data tomorrow, this could be a common theme in the lead-up to Christmas. It could get busy towards the end of the year as borrowers increasingly come out of their shells, enticed by better mortgage rates. Brokers should start bracing themselves for a potentially busy month.”

Elliott Culley, director at Switch Mortgage Finance, added: “It's no surprise to see a lender of HSBC's size and stature continuing to reduce their rates. Swap rates are continuing to reduce as more positive data is being released on inflation cooling and base rate stability. Expect others to follow.”

Rohit Kohli, director at The Mortgage Stop, was also upbeat, but doesn't expect a cut to the base rate anytime soon: "HSBC has provided us with some positive news following the shocking company insolvency and debt relief order data published this morning. Swap rates have continued to reduce and the market has been crying out for this type of stability so I think the Bank of England have finally got it right with holding rates. I don't think we'll see the base rate reduce in the near future but it's welcome news for homebuyers and people remortgaging."

Ben Tadd, director at Chippenham and Bath-based broker, Lucra Mortgages, said the cuts reflect the race for market share: “More positive news for mortgage borrowers as HSBC throws its hat into the rate war ring in an attempt to maintain market share. Nationwide slashing their rates last week has prompted a response from the rest of the big six lenders, with a need to compete on pricing. Halifax, another one of the big six lenders, has also just announced further cuts to their purchase products from tomorrow, so the rate war rumbles on. More lenders are bound to follow suit with further rate reductions in the coming days to ensure they maintain their market share.”

Justin Moy, managing director at Chelmsford-based broker, EHF Mortgages, agreed with Tadd that lenders are fighting it out to be competitive: "With the expected positive inflation figures, it's inevitable that mortgage lenders like HSBC will look to improve their range of products. HSBC has reduced rates across their whole range including higher LTV products, a welcome relief to many first-time buyers in particular. Other lenders will be lining up to follow HSBC this week to remain competitive in a subdued market."

But Darryl Dhoffer, director at Bedford-based The Mortgage Expert, said: “This reminds me of the last squeeze on a tube of toothpaste. As yet we don't know what the decreases will be. If it is yet another lender reducing rates for consumers with a 40% deposit or equity then, in my opinion, it's another PR exercise and little else. To reignite the market, we need high LTV rate reductions along with reductions on existing customer rates.”

Graham Cox, founder at Bristol-based broker, SEMH, concluded: "The ongoing price war to attract new mortgage business in a slow market continues unabated. HSBC is the latest lender to cut rates as we slowly inch towards sub-5% deals for the majority of mortgage products. As long as this week's inflation data doesn't disappoint, it's likely rates will continue falling."

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10 responses from the Newspage community

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Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
With inflation coming down, it is only a matter of time before someone takes the plunge with a significant rate announcement, and HSBC is a contender. Today, they have announced widespread rate cuts across their range so all eyes are on the grand unveil tomorrow. Let's hope they mean business.
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Editor
Craig Fish
Director at Lodestone Mortgages
Whilst we don't yet know the specifics, these rate cuts from HSBC show they are out to do business. Let's hope there is some focus on those who wish to remortgage and on those borrowing at higher loan-to-values. It does look like the rate war is on, and with the high expectation of positive inflation data tomorrow, this could be a common theme in the lead-up to Christmas. It could get busy towards the end of the year as borrowers increasingly come out of their shells, enticed by better mortgage rates. Brokers should start bracing themselves for a potentially busy month.
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
HSBC has provided us with some positive news following the shocking company insolvency and debt relief order data published this morning. Swap rates have continued to reduce and the market has been crying out for this type of stability so I think the Bank of England have finally got it right with holding rates. I don't think we'll see the base rate reduce in the near future but it's welcome news for homebuyers and people remortgaging.
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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Further rate reductions from HSBC are greatly appreciated, especially those in the higher loan-to-value brackets. This should kick-start another round of rate reductions, some before and some after, the expected good news on inflation due this week. With each day that passes, there are more reasons to be positive in the mortgage market.
Copy

Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
This reminds me of the last squeeze on a tube of toothpaste. As yet we don't know what the decreases will be. If it is yet another lender reducing rates for consumers with a 40% deposit or equity then, in my opinion, it's another PR exercise and little else. To reignite the market, we need high LTV rate reductions along with reductions on existing customer rates.
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
With the expected positive inflation figures, it's inevitable that mortgage lenders like HSBC will look to improve their range of products. HSBC has reduced rates across their whole range including higher LTV products, a welcome relief to many first-time buyers in particular. Other lenders will be lining up to follow HSBC this week to remain competitive in a subdued market.
Copy

Platinum
Elliott Culley
Director at Switch Mortgage Finance
It's no surprise to see a lender of HSBC's size and stature continuing to reduce their rates. Swap rates are continuing to reduce as more positive data is being released on inflation cooling and base rate stability. Expect others to follow.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
The plans of the Treasury and Prime Minister's plan are starting to show their effect and this is welcome news for potential home buyers. The data has eased some concerns showing that market predictions for additional interest rate increases may not be as bad as initially predicted. The combination of elevated borrowing expenses and the ongoing cost of living crisis has had a large impact on consumer demand. The burden of mortgage affordability dampens demand as we all know. Considering that a house is typically the most significant asset for many individuals, declining prices could significantly impact their confidence, leading to potential changes in their spending decisions. Therefore HSBC's decision to lower their rates is a welcome first step in stabilising the market and we hope that other lenders will follow suit.
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Graham Cox
Director at Bridging Hub
The ongoing price war to attract new mortgage business in a slow market continues unabated. HSBC is the latest lender to cut rates as we slowly inch towards sub-5% deals for the majority of mortgage products. As long as this week's inflation data doesn't disappoint, it's likely rates will continue falling.
Copy

Ben Tadd
Director at Lucra Mortgages
More positive news for mortgage borrowers as HSBC throws its hat into the rate war ring in an attempt to maintain market share. Nationwide slashing their rates last week has prompted a response from the rest of the big six lenders, with a need to compete on pricing. Halifax, another one of the big six lenders, has also just announced further cuts to their purchase products from tomorrow, so the rate war rumbles on. More lenders are bound to follow suit with further rate reductions in the coming days to ensure they maintain their market share.