HSBC has made rate reductions across its residential and buy-to-let (BTL) mortgage products.
Changes will be effective from 3 December and apply to select two-, three- and five-year offerings for existing residential borrowers switching with HSBC, on deals up to 95% loan to value (LTV).
Reductions have also been made to products for existing residential customers borrowing more, while two- and five-year fixes for first-time buyers and homemovers between 80% LTV and 95% LTV have also been cut.
HSBC’s two-year fixed remortgages at 80%, 85% and 90% LTV for standard and energy-efficient homes have been reduced, as have the options with cashback.
For BTL borrowers, its two-year fixes for existing customers switching or borrowing more at 60% LTV have gone down, as have the three-year fixed fee-saver deals for international residential borrowers at 70% and 75% LTV.
Nick Mendes, mortgage technical manager at John Charcol, reacted to the update, saying: “Following Barclays’ recent move, HSBC’s adjustments reflect a steadier market, with swap rates stabilising and holding lower in recent days. These reductions, spanning first-time buyers, homemovers, remortgages, and even energy-efficient properties, are a positive step for those looking to secure a better deal.
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“For borrowers, this is an encouraging development to start December. Whether you’re locking in a fixed deal for a new home, borrowing more, or securing a better rate for an energy-efficient property, these reductions are well-timed. That said, it’s still early days to call this a ‘price war’, as not all lenders have moved in unison. The stability in swaps has simply given lenders like HSBC the room to adjust.”
He added: “With no changes to other interest rates at this time, all eyes will be on whether more lenders follow suit in the coming weeks. For now, HSBC’s rate cuts are a strong signal that the market is gradually moving towards stability after a challenging few months for both lenders and borrowers.”
Gen H makes rate cuts up to 0.25%
Gen H has reduced mortgage rates by as much as 0.25% across its high-LTV mortgages.
At 95% LTV, the lender has cut rates by around 0.15% and 0.25%, while 90% and 80% LTV deals have been reduced by around 0.1% to 0.15%.
Gen H said it focused on high-LTV deals to support first-time buyers and borrowers with smaller deposits.
Pete Dockar, chief commercial officer at Gen H, said: “There’s no better way to begin the festive season than with a selection of rate reductions – it’s our gift to our brokers and their clients. I’m pleased to see other lenders also making moves in a positive direction.
“These cuts will especially benefit those with small deposits, but for clients who need a bit more support, brokers should remember that our income booster or deposit booster could help close the gap.”
MPowered Mortgages cuts three-year fixed rates
MPowered Mortgages has reduced its three-year fixed mortgage rates by as much as 0.12%, with pricing now starting from 4.09%.
This applies to purchase and remortgage options.
For new purchase borrowers, the lender’s three-year fixes start at 4.09% at 60% LTV with a £999 fee and 4.27% with no fee.
This was the second time in a month that MPowered Mortgages had lowered rates, meaning it made reductions of 0.29% overall in November.
Stuart Cheetham, CEO of MPowered Mortgages, said: “The market went completely out of sync in mid-October to early November with what we thought was some very irrational pricing by lenders who decided not to follow the swap curve on its upwards trajectory.
“The result we feel was likely to have been some very marginal and unprofitable lending. We deliberately kept our powder dry, and can as a result launch very competitive rates by pricing consistently when others are now having to try and recover positions.”
He added: “For anyone remortgaging or purchasing a property near the Christmas period, this environment of increasing rates is somewhat unsettling, especially when, as we know, Christmas is for most an expensive time of year especially given the extra cash needed to fork out for presents for our families and friends.
“The outlook on the path for mortgage rates in 2025 still remains very much uncertain and we would always urge borrowers to remain cautious and seek independent advice before choosing a mortgage.”
