HSBC has announced another wave of reductions to mortgage rates that will be implemented this week.
The bank confirmed it will be cutting interest rates across selected residential and buy-to-let rates.
Interest rates have been on the rise in recent years following the decision of central banks to hike them in a bid to control the impact of soaring inflation.
A consequence of this is that borrowers, including mortgage holders, have been forced to pay more.
However, financial institutions such as HSBC appear to be offering homeowners some relief despite rate rises.
Here is a breakdown of the changes to the mortgage rates being made by HSBC as of tomorrow:
Existing residential customer switching / borrowing more
- Two Year Fixed Fee Saver at 70 percent and 75 percent LTV decreasing
- Two Year Fixed Standard at 85 percent LTV decreasing
- Five Year Fixed Fee Saver at 60 percent, 70 percent, 75 percent, 80 percent, 85 percent and 90 percent LTV decreasing
- Five Year Fixed Standard at 60 percent, 70 percent, 75 percent, 80 percent, 85 percent and 90 percent LTV decreasing
- Five Year Fixed Premier Exclusive at 60 percent, 70 percent, 75 percent, 85 percent and 90 percent LTV decreasing
Residential first time buyer / home mover
-
Two and Three Year Fixed Fee Saver at 60, 70, 75, 80, 85 and 90 percent LTV decreasing
- Two, Three and Five Year Fixed Standard at 60, 70, 75, 80, 85 and 90 percent LTV decreasing
- Five Year Fixed Fee Saver at 60, 70, 75, 80, 85, 90 and 95 percent LTV decreasing
- Five Year Premier Exclusive at 60, 70, 75, 80, 85 and 90 percent LTV decreasing
Residential remortgage
Recently, Newspage spoke to mortgage experts about the latest changes being made by the HSBC to benefit homeowners.
Denni Tyson, a mortgage broker at Henchurch Lane Financial Services, praised the bank’s decision and outlined why it will help consumers.
He explained: “This is another very positive step for the market, with HSBC also now reducing rates.
“For the first time in months, I have been able to write a mortgage with a ‘four’ at the start.
“Hopefully, this will push more rates into the sub-five percent space, which will calm things and give consumers plenty of options with their existing mortgage deals.”
Rohit Kohli, the operations director at The Mortgage Stop, warned that homebuyers may still experience a “tough winter” despite these reductions.
The mortgage expert added: “It is a domino effect at the moment. When one of the major lenders reduces, others will almost certainly follow.
“It is welcome news for people rolling off their fixed rates in the coming weeks and months as this will take some of the pain out of the rises they were expecting, but we’re not out of the woods yet.
“It’s still going to be another tough winter for many despite these reductions. The mortgage market now is worlds apart from what it was just over a year ago.”
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