In a move set to benefit thousands of homeowners and potential buyers, HSBC has announced a series of changes to its residential mortgage product ranges. Starting from Wednesday the 26th July 2023, the bank is implementing a range of adjustments that will provide customers with better options and greater affordability.
What Are The Changes To HSBC Mortgage Products?
One of the most anticipated changes is the reintroduction of HSBC’s cashback incentive, which will be available on a selection of UK Residential Remortgage rates. Borrowers opting for the cashback incentive will have the choice of receiving £300 cashback or enjoying free standard legal fees across HSBC’s UK Residential Remortgage 2-Year Fixed and 5-Year Fixed Rate offerings. Meanwhile, the free standard legal fees incentive will continue to be available for all other UK Residential Remortgage rates that are not covered under the cashback incentive.
For existing residential customers looking to switch products or borrow more, there are further reasons to celebrate. HSBC is decreasing rates for their 5-Year Premier Exclusive mortgages at 60%, 70%, and 75% Loan-to-Value (LTV), which will make refinancing or borrowing additional funds more appealing. However, how much the rates are dropping by has not yet been revealed.
First-time home buyers and home movers will also benefit from the bank’s mortgage rate cuts. HSBC is decreasing rates across several categories, including the 2 & 5-Year Fixed Fee Saver mortgages at 60%, 70%, 75%, 80%, 85%, and 90% LTV, as well as the 2-Year Fixed Standard mortgages at 60%, 70%, 75%, 80%, and 85% LTV. Furthermore, the 3-Year Fixed Standard mortgages at 60%, 70%, and 75% LTV, and the 5 -ear Fixed Standard mortgages at 60%, 70%, 75%, 80%, 85%, and 90% LTV are also being reduced. The 5-Year Premier Exclusive and 2-Year Tracker Standard mortgages at various LTVs will experience rate decreases too.
Residential Remortgages
For those considering residential remortgages, HSBC’s changes are looking more appealing. The 2 & 5-Year Fixed Fee Saver mortgages at 60%, 70%, 75%, 80%, 85%, and 90% LTV, along with the 2 & 5-Year Fixed Standard mortgages at these LTV levels, will see reductions in rates. Additionally, the 3-Year Fixed Standard mortgages at 60%, 70%, and 75% LTV, the 5-Year Premier Exclusive mortgages at 60%, 70%, 75%, 80%, 85%, and 90% LTV, and the 2-Year Tracker Standard mortgages at various LTVs are all set for rate decreases.
International Buyers
For international buyers looking to purchase property in the UK, HSBC is introducing lower rates on the 2 & 5-Year Fixed Fee Saver mortgages at 60%, 70%, and 75% LTV, as well as the 2, 3 & 5-Year Fixed Standard mortgages at the same LTV levels. Furthermore, the 5-Year Premier Exclusive and 2-Year Tracker Standard mortgages at 60%, 70%, and 75% LTV are also experiencing rate reductions.
Will Other Lenders Drop Their Rates?
Yes, rates do seem to be decreasing. And although the new rates haven’t officially been released yet, we predict that they won’t drop by much. Stress tests and affordability assessments are still high, meaning that it is still difficult to get the right levels of mortgage borrowing, even if rates do come down. Unfortunately there are still a lot of lenders still increasing their rates. In fact Santander actually put their rates up yesterday, sending borrowers mortgage payments soaring in a lot of cases. Halifax are also falling way behind their usual time scales for case assessment, which usually means that they will increase rates or tighten affordability criteria or insist on higher deposits – so they get less business while they catch up. And if Halifax do this, often other banks do the same
Only time will tell when rates will decrease and by how much, so if you are coming up for a mortgage renewal or are thinking of getting a new mortgage, you should always consult a mortgage broker. We at Oportfolio follow the rate market very closely and always know when rates increase or decrease, and we can help you to secure a good rate much quicker than going direct to a bank. Call our team today for a free initial mortgage consultation. We are here to help.
