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HomeMortgageHSBC increases low LTV rates and cuts high LTV pricing

HSBC increases low LTV rates and cuts high LTV pricing



HSBC has announced changes to its mortgage range which will take effect from 22 October.

The bank has announced mortgage rate reductions across its higher loan to value (LTV) options at 80% and 85% tiers, while pricing across HSBC’s lower LTV deals will be increased. 

Reductions include its two-year fixed existing borrower residential switching and borrowing more rates, two-year fixed first-time buyer and homemover rates, and options for borrowers with energy efficient homes. 

These changes apply to options at 80% and 85% LTV. 

HSBC will also lower pricing across select two- and five-year fixed remortgages for standard, fee saver and premier exclusive deals at 80%, 85% and 90% LTV for standard and energy efficient properties. 

Similar changes will be made to two- and five-year fixed remortgages with cashback. 


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Rate increases include two- and five-year fixes for residential first-time buyers and homemovers both with standard and energy efficient properties at 60%, 70% and 75% LTV, as well as select remortgage options. 

The bank is reducing two-year fixed buy-to-let remortgage rates at 60%, 65% and 75% LTV across options with no fee, a £1,999 fee and a £3,999 fee. 

 

HSBC taking a ‘strategic approach’ 

Nick Mendes, mortgage technical manager at John Charcol, said: “HSBC’s latest mortgage rate changes reflect a strategic and varied approach, with a mix of increases and decreases across its product lines. The reductions in the two-year fixed standard products at 80% and 85% LTV suggest a focus on making mid-tier borrowing more attractive, particularly for homeowners looking to remortgage.  

“However, the increases in lower LTV products, especially at 60%, point to a more cautious response to recent market volatility and rising funding costs.” 

He added: “These adjustments align with similar moves from major lenders such as Barclays, Halifax, Santander, and NatWest, who have all reacted to fluctuations in swap rates. While these repricing changes signal short-term market volatility, they don’t necessarily indicate a long-term trend. 

“In the broader economic context, falling inflation has strengthened the Bank of England’s position to consider rate cuts in November and possibly December. However, the market remains sensitive to changes in the economic outlook, with attention focused on next week’s Budget for further direction. 

“For borrowers nearing the end of their fixed rates, securing a rate now might be a wise move, given the potential for further changes post-Budget. However, it’s important to stay vigilant and review options regularly, as many lenders may reprice downwards in the coming months if economic conditions stabilise.” 





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