Virgin Money and several other lenders also reprice offerings
HSBC UK has led a fresh wave of mortgage rate reductions across the market, as several lenders revise pricing strategies in response to improving market conditions.
The high street bank announced that, effective Monday, May 19, it will reduce fixed rates across a broad selection of its residential mortgage products. The cuts apply to two-, three-, and five-year fixed rates within its fee saver, standard, premier exclusive, and high value ranges on major loan-to-value (LTV) bands from 60% to 95%.
For first-time buyers and home movers, the lender has lowered two-year fixed fee saver and standard rates across all core LTVs, along with similar reductions in its high value mortgage products between 60% and 75% LTV. Rate reductions also apply to five-year fixed options, particularly within the standard and high value ranges at 70% to 85% LTV.
Premier exclusive products have also seen rate cuts at several LTV levels. The lender has extended the same pricing to energy-efficient home loans rated EPC ‘A’ or ‘B’. Existing customers benefit as well, with reduced rates on switcher and further advance products across two- and five-year terms.
Meanwhile, Virgin Money has cut selected purchase and remortgage fixed rates. Two- and five-year fixes with a £995 fee have been lowered by up to 0.15%, while fee-saver versions have dropped by up to 0.25%. Reductions of up to 0.16% and 0.13% are being applied to remortgage products with and without fees respectively. The lender is also cutting its Retrofit Boost and Own New five-year rates and withdrawing some high-value offerings, including £1 million-plus fixes at 75% LTV.
Clydesdale Bank has also made rate reductions across its core, exclusive, and professional mortgage lines. Cuts of up to 0.15% apply to select two- and five-year fixes between 65% and 75% LTV. The bank is also adjusting rates for exclusive large loan and remortgage products, with some drops of up to 0.20%. Its professional range sees the steepest reductions, up to 0.25% across key LTV brackets.
West Brom Building Society has also lowered its two-year fixed mortgage rates by as much as 0.25% for borrowers at 90% and 95% LTV. A 90% LTV product with a £999 fee now stands at 4.50%, while a fee-free option has been reduced to 4.70%. At 95% LTV, a two-year fix with a £999 fee now comes in at 4.84%.
Elsewhere, Kensington Mortgages has trimmed residential rates by up to 0.55% and buy-to-let (BTL) rates by up to 1.55%. New residential select products start from 5.29% at 65%-75% LTV. The lender’s special 95% LTV rates, which include no fee and free valuation, now range from 6.79% to 7.24% across fixed terms. Landlord products under its core and prime ranges have also been repriced, starting from 3.19% at 70% LTV and 4.39% at 75% LTV.
Similarly, Furness Building Society has reduced rates across its full range of residential, BTL and holiday let offerings. Its two-year fixed residential rate now starts at 4.55% for loans up to 90% LTV. Shared ownership products begin at 4.24% and are available up to 95% loan to share.
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