HSBC has slashed mortgage rates on 140 products in a big boost for homeowners. The new rules for borrowers, issued by the bank from today (Friday May 17) come in a bid to help customers get on the property ladder.
A HSBC UK spokesperson: “We are firmly focused on helping customers onto or up the property ladder. There are a number of factors that are taken into account when setting mortgage rates, and following a review, we are reducing over 140 mortgage rates by up to 0.18 per cent, we continue to keep our rates under review.”
HSBC said new business residential rates have been cut by up to 0.18 percentage points, and for homeowners who already have a mortgage with the bank and are looking to get a new fixed deal, rates have been cut by up to 0.11 percentage points.
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The move follows similar cuts from TSB and Barclays today. HSBC’s new deals include a two-year mortgage for home buyers with a 10% deposit and no fee with a rate of 5.57%, reduced by 0.11 percentage points.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “This latest round of mortgage rate reductions from some big lenders is great news for borrowers. They come on the back of a decline in swap rates, which underpin the pricing of fixed-rate mortgages, over the past week.
“These cuts should give other lenders confidence to make similar reductions, which will stimulate activity and provide a welcome boost for the market.”
New HSBC UK mortgage rates
Residential – Purchase
- Two year 60 per cent loan-to-value (LTV) with no fee: now 4.99 per cent reduced by 0.09 per cent
- Two year 90 per cent LTV with no fee: now 5.57 per cent reduced by 0.11 per cent
- Five year 60 per cent LTV with £999 fee: now 4.40 per cent reduced by 0.08 per cent
- Five year 85 per cent LTV with £999 fee: now 4.69 per cent reduced by 0.04 per cent.
Buy-to-Let (BTL) – Remortgage
- Two year 60 per cent LTV with £1999 fee: now 4.69 per cent reduced by 0.14 per cent.
