Are HSBC Mortgage Rates Going Down In 2025?
In a very welcome introductory message for the new year, HSBC has updated its Energy Efficient Homes Cashback Mortgage (EEHC) offerings, increased cashback availability and reduced mortgage rates across its range. HSBC mortgage rates, as well as every other lender’s rates moving into 2025 have been a hot topic for brokers and borrowers alike. Will rates come down? Will they stay the same? Will they increase?? (hopefully not). These new updates from HSBC seem to be a step in the right direction within the first week of 2025 and we are hoping that similar news will be announced by other lenders too. In this blog, I will run through the recent changes announced by HSBC and what they mean for the UK mortgage market in 2025.
Competitive HSBC Mortgage Rate Reductions
HSBC has introduced widespread rate reductions across its mortgage portfolio, providing greater affordability for buyers and homeowners looking to remortgage. These include:
- Two-year fixed residential mortgages: Reduced by up to 0.16%, with rates starting as low as 4.09% (or 4.06% for Premier customers).
- Five-year fixed residential mortgages: Lowered by up to 0.15%, particularly beneficial for long-term mortgage affordability.
- Buy-to-let (BTL) remortgages: Rates have fallen by up to 0.23%, very appealing for landlords in 2025.
- Switcher rates for existing customers: Cut by as much as 0.47%, allowing current borrowers to switch to a more competitive deal.
These rate changes thankfully follow similar reductions recently announced by major competitors such as Halifax and Leeds Building Society, reflecting broader trends in the UK mortgage market. We at Oportfolio are certainly predicting and hoping for a good year for mortgage rate reductions. 2024 was fairly stable but we didn’t see reductions as frequently or as significant as many of us hoped. A mortgage market with high interest rates for a long period of time can’t be sustainable in our eyes, and lenders must take a leaf out of HSBC and Halifax’s book and start to reduce rates.
Enhanced Cashback For Energy Efficient Homes
The EEHC mortgage from HSBC now provides borrowers with up to £750 cashback for properties with an Energy Performance Certificate (EPC) rating of A or B. Initially launched in March 2024 to promote sustainable homeownership, this cashback incentive is now more accessible to customers applying directly to HSBC, in addition to those using mortgage brokers. Notably, the cashback on EEHC mortgages has grown from £500 to £750 or £1,250, depending on the selected mortgage. This increase means that borrowers could receive up to £1,750 in total cashback when combining the EEHC with other cashback offers. The whole point of this change being to encourage people to purchase a more sustainable property moving into 2025 and beyond. A high priority for many companies, not just mortgage brokers, is to make sure that the services they offer are more eco friendly and sustainable.
Sustainability And Savings Go Hand-In-Hand
As we’ve already mentioned, HSBC’s focus on sustainability aligns with growing consumer and regulatory interest in energy-efficient homes. The EEHC mortgage rewards borrowers for prioritising greener properties, contributing to long-term environmental goals while also offering immediate financial incentives that can significantly improve a cash strapped borrower’s financial situation. Who wouldn’t want a free £1,750 cashback when you have spent all your money on buying your property in the first place!
Why This Matters For Borrowers
For buyers and homeowners, HSBC’s updates offer a dual advantage:
- Reduced borrowing costs: With significant rate cuts, HSBC’s mortgages are now among the most competitive on the high street.
- Increased cashback opportunities: Borrowers can now unlock substantial financial rewards, particularly when purchasing or remortgaging energy-efficient homes.
Speak To A Mortgage Advisor About HSBC Mortgage Rates Reductions And Sustainable Mortgages
HSBC UK’s latest enhancements to its Energy Efficient Homes Cashback Mortgage and its comprehensive rate reductions position the lender as a leader in both sustainability and affordability. Whether you’re buying a new home, remortgaging, or looking for a greener property, these updates offer compelling incentives to consider HSBC for your next mortgage. With the mortgage market evolving rapidly, you have to act quickly to take advantage of these favourable terms before further changes come into play. Call or drop our team of advisors at Oportfolio Mortgages a message today to speak with a professional advisor. We are here to help.
