It announces changes on select two- and five-year fixes
HSBC UK is adjusting rates across a range of its residential mortgage products, with the new changes taking effect from tomorrow, November 5.
The reprice impact both existing customers and new borrowers, affecting various loan-to-value (LTV) tiers across fixed rate terms and product categories.
For existing customers looking to switch rates, the bank has announced that the two-year fixed fee saver product at 60% LTV will see a rate decrease, while the same product at 70%, 75%, 80%, 85%, and 95% LTV will have increased rates. Additionally, the five-year fixed fee saver and five-year fixed standard products will have rate increases across most LTV brackets. Premier exclusive products in the five-year fixed category will also see rate hikes from 60% up to 90% LTV.
Customers wishing to borrow additional funds will experience similar changes, with rate decreases on the two-year fixed fee saver at 60% LTV but increases for other LTV bands and across other fixed rate products.
For first-time buyers and home movers, one of the UK’s largest mortgage lenders has reduced rates on several two-year fixed products in lower LTV bands of 60%, 70%, and 75%, while raising them at higher LTV tiers like 80%, 85%, and 95%. Meanwhile, most five-year fixed rate options, including high-value mortgage products, will see rate increases.
Borrowers purchasing energy-efficient homes, defined as properties with an energy performance certificate (EPC) rating of ‘A’ or ‘B’, will face a mixed picture. The two-year fixed options at lower LTVs of 60%, 70%, and 75% are reduced, but higher LTV tiers for both two- and five-year fixed options are set to increase.
Remortgaging customers, including those eligible for cashback or with energy-efficient properties, will find higher rates across two- and five-year fixed products in nearly all LTV categories. Similar increases will apply to high-value mortgages in these segments.
For international residential customers, the high street lender is also raising rates. The two-year fixed fee saver and five-year fixed standard products will have rate hikes at LTV levels of 60%, 70%, and 75%.
HSBC’s latest rate adjustments follow a trend among UK lenders, who are modifying mortgage rates in response to shifting economic conditions and market dynamics. Several lenders have raised borrowing costs, with volatility spiking after Rachel Reeves’ recent Budget announcement, which initially led to rate withdrawals, particularly among smaller and specialist lenders.
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