HSBC to further cut residential and buy-to-let mortgage rates

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HSBC is set to lower rates across its residential and buy-to-let ranges, including products for home movers, first-time buyers, remortgagers and existing customers.

The reductions come into effect on Thursday 20 November and span fee saver, standard, premier exclusive and high value products at multiple loan-to-value bands.

The lender confirmed that cuts will apply to two, three and five year fixes, with decreases visible at 60%, 70%, 75%, 80%, 85%, 90% and, in some cases, 95% LTV. Adjustments are also being made to energy-efficient home ranges for A and B EPC-rated properties, as well as cashback variants.

RESIDENTIAL SWITCHING AND BORROWING

For existing residential customers, HSBC is reducing two, three and five year fixed rates across both switching and additional borrowing products. These include fee saver and standard options at between 60% and 95% LTV, along with premier exclusive products at selected bands.

High value mortgages at 70% and 75% LTV will also see reductions.

Home movers and first-time buyers will benefit from cuts across the majority of HSBC’s mainstream residential range. Two and five year fee saver and standard products will fall at LTVs between 60% and 95%, while five year premier exclusive rates will also decrease.

The lender is also trimming rates on its high value offering at 60%, 70% and 75% LTV.

The energy-efficient home ranges for A and B EPC-rated properties will mirror many of these reductions, covering fee saver, standard and five year products across key LTVs, including up to 95% LTV on selected fixes.

RESIDENTIAL REMORTGAGE AND CASHBACK

Remortgage customers will see reductions across two, three and five year fixed deals at LTVs ranging from 60% to 90% and, in some cases, 95% LTV. This includes adjustments to high value mortgages and premier exclusive products.

Cashback remortgage products and the cashback energy-efficient home range will also be reduced at comparable LTV levels, covering two and five year fee saver and standard products.

BUY-TO-LET CHANGES

Across the buy-to-let range, reductions apply to both new and existing customers. For new remortgage applications, two year fee saver and standard fixes will fall at 60%, 65% and 80% LTV, alongside reductions to premier exclusive products.

Buy-to-let existing customers switching or borrowing more will see decreases across two year fee saver, standard, premier fee saver and premier standard products at 60%, 65%, 75% and 80% LTV.

INTERNATIONAL RANGE

HSBC will also reduce selected international residential and buy-to-let rates. This includes two, three and five year fee saver, standard and premier exclusive products at 60%, 65%, 70% and 75% LTV across its international residential, remortgage and buy-to-let ranges.

The lender reminded brokers that premier exclusive rates are only available when the borrower holds an eligible HSBC Premier current account. If this is not in place at application, a standard range rate must be selected instead.

HSBC said the changes reflect continued movements in funding costs and its ongoing review of pricing across its mortgage book. No further alterations have been announced at this time.

A spokesperson said the reductions apply broadly across the bank’s portfolio, offering customers and brokers more competitive fixed-rate options ahead of the end of the year.

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