Reductions made across first-time buyer, purchase, remortgage and BTL products
HSBC UK has reduced rates across its mortgage range by up to 10 basis points (bps), with changes effective from today, 22 June.
The cuts apply to products for first-time buyers, home-movers and remortgagers, including buy-to-let remortgage deals.
Among the headline reductions for first-time buyers, the five-year fixed rate at 90% loan-to-value (LTV) with a £999 fee falls by 5bps to 4.76%, while the equivalent no-fee product drops by 7bps to 4.88%. Both carry £500 cashback, rising to £850 for energy-efficient homes. The five-year fix at 95% LTV (no fee) is cut by 9bps to 5.28%, with cashback of £1,500, increasing to £2,000 for energy-efficient properties.
On the purchase side, the two-year fix at 60% LTV with no fee falls by 8bps to 4.53%, and the two-year fix at 85% LTV (no fee) is reduced by 10bps to 4.77%. Premier customers see the two-year fix at 60% LTV (£999 fee) fall by 5bps to 4.30%, with the equivalent five-year fix also cut by 5bps to 4.35%.
For remortgage borrowers, the two-year fix at 60% LTV (no fee) is reduced by 9bps to 4.73%, and the five-year equivalent falls by 7bps to 4.67%. Premier remortgage products also see reductions, with the two-year fix at 60% LTV (£999 fee) down 8bps to 4.44% and the two-year fix at 90% LTV (£999 fee) reduced by 8bps to 5.05%.
In the buy-to-let remortgage range, the two-year fix at 60% LTV (no fee) drops by 9bps to 4.88%, while the two-year fix at 65% LTV (£1,999 fee) falls by 7bps to 4.53%. The five-year fix at 65% LTV (no fee) is cut by 6bps to 4.79%. The Premier two-year fix at 60% LTV (£1,999 fee) is reduced by 7bps to 4.43%.
Cashback incentives of £350 apply to several buy-to-let remortgage deals for energy-efficient homes.
The HSBC reductions come amid sustained pricing activity from major lenders in June. NatWest, Barclays, TSB and Santander have all continued to cut fixed mortgage rates this month, following a period of rapid hikes earlier in the year.
Last week, Barclays cut rates across its residential range on two-, three- and five-year fixed products and tracker deals, with reductions of up to 33bps — the sharpest among five-year fixes, where the 60% LTV product with a £899 fee fell from 4.76% to 4.43%.
Nationwide also implemented rate cuts of up to 28bps across its two-, three-, five- and 10-year fixed mortgage range in the same week, bringing its lowest available rate to 4.29%. The cuts covered first-time buyers up to 95% LTV, remortgage customers up to 90% LTV, and home-movers.
Earlier in the month, Lloyds Bank and Halifax cut rates by up to 10bps across home-mover, first-time buyer and remortgage products, covering two-, three- and five-year fixed deals, while NatWest reduced mortgage rates by up to 15bps.
Sterling swap rates eased through April and May, and that softening is what has allowed lenders to trim fixed pricing even though the Bank of England base rate has remained unchanged at 3.75%.
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