HSBC cuts resi and BTL rates by up to 45bps  


HSBC has made its “most significant” set of rate cuts this year, which includes reducing its five-year 60% loan-to-value remortgage, with a £999 fee, to under 4.00% for the first time since September.  

The high street bank adds that its cut range “across almost every fixed rate mortgage” for new and existing residential borrowers with reductions of up to 45 basis points.  

Highlights include:   

  • Reductions of up to 45bps on more than 130 residential mortgages  
  • Its first five-year fixed-rate mortgage under 4.00% since September 2022, at 60% LTV, with a £999 fee and priced at 3.99% for remortgages  
  • More cashback options added with £500 or £250 available on over 25 mortgages   
  • And two dozen rate cuts across its buy-to-let loans, with reductions ranging from 5bps to 30bps  

The lender adds this is the “third and most significant set of reductions” it has made across its home loans this year and comes as the bank recently lifted interest rates on savings accounts for the seventh time in a year.  

The bank’s move to a below 4.00% five-year purchase loan comes after late September’s tax-cutting mini-Budget by then Chancellor Kwasi Kwarteng, which unsettled markets and lifted prices. 

These cuts were largely reversed by current Chancellor Jeremy Hunt in October and his November Autumn Statement, although loan prices remain elevated. 

L&C Mortgages says that the reduction in fixed mortgage rates continues with the launch of the first five-year fix to drop below 4.00% since the mini-Budget sent rates rocketing in September.

It adds that the last five-year deal to offer a rate below 4.00% was withdrawn in early October and fixed rates climbed steeply after that.

But now it says as funding conditions have stabilised and eased, rates have begun to fall back, with the pace of rate cuts accelerating this year.

The L&C Remortgage Tracker showed that the average of the top ten lenders’ lowest two-and five-year fixed rates had dropped by more than 1.20% between November and the end of January.

The specialist lender says that shows no sign of slowing despite last week’s Bank of England base rate rise to 4.00% from 3.50%.

L&C Mortgages associate director, communications David Hollingworth says: “The thought of being able to fix at a rate lower than base rate would have sounded like a dreamland in recent months.

“But despite base rate continuing its upward trajectory fixed rates have been falling and borrowers are now faced with a very different picture.

“Although those coming to the end of a fixed rate taken during the low in rates of recent years, will still be faced with higher payments than they have been used to, it’s a far cry from the prospect of rates at 6% or more.

“These deals are beginning to offer rates that many may have feared were headed for extinction.

“Those borrowers that understandably decided to sit on their hands when rates went through the roof last October, should now seriously consider if it’s time to take advantage of these significant improvements.”

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