HSBC Launches Sub-5% Interest Rate Mortgages

by | Wednesday 27th Sep 2023 | Mortgage News

Homebuyers and property investors alike are set to benefit from new products released by HSBC this week, as the high street bank slashes rates by up to 0.16% on over 140 mortgage products. This strategic decision marks a significant reduction in interest rate mortgages costs, putting homeownership and investment opportunities within reach for more individuals and families. Let’s delve into the details of HSBC’s exciting new announcement.

HSBC’s Lowest Interest Rate Mortgages

HSBC’s lowest rate offering is a five-year fixed-rate loan with a 60% loan-to-value (LTV) ratio, featuring an incredibly competitive 4.93% interest rate. With a £999 fee that can be added to the balance of the loan or paid upfront. This mortgage product really is a game-changer in the market as the average interest rate in the country still stands at over 6%. HSBC emphasises that this rate is a whopping 0.96% lower than what was available just a few months ago in July 2023.

A Broad Range of Mortgage Savings

HSBC’s rate cuts extend across various product categories, with reductions ranging from 0.1% to a substantial 0.16%. On average, borrowers can expect a 0.10% reduction on their mortgage rates. These reductions encompass both purchase and remortgage options, catering to a broad spectrum of homebuyers and investors. Adding to the allure of its mortgage offerings, HSBC has introduced a £350 cashback bonus on selected five-year fixed-rate products for those who are moving home. This financial incentive sweetens the deal and further reduces the upfront costs associated with purchasing a property.

HSBC’s Commitment to Affordability

HSBC’s commitment to affordability is evident in its rate reductions across various LTV ratios:

  • 60% LTV five-year fixed-rate loans: With a £999 fee, these mortgages have seen a substantial 0.16% reduction, bringing the rate down to an attractive 4.93%. This is fantastic news for both purchase and first-time buyers looking for a long-term fixed-rate option.
  • 90% LTV two-year fixed-rate deals: These loans, also with a £999 fee, have been reduced by 0.10%, making them more affordable at 5.89% for purchase and first-time buyers.
  • 95% LTV five-year fixed-rate offers: Designed exclusively for first-time buyers, these mortgages now feature a 0.10% reduction, landing at 5.79%. What’s more, HSBC is offering a generous £500 cashback, making homeownership even more accessible.
  • 60% LTV five-year fixed-rate products for remortgagers: Existing homeowners looking to refinance can now enjoy a 0.10% reduction to 5.19% on these loans, with a £999 fee.

Competitive Lending

HSBC’s move to offer sub-5% interest rate mortgages is a significant step forward in the mortgage industry. As we have already mentioned, the average mortgage rate in the UK is still above 6%, so a sub 5% product entering the market is a positive sign. This aggressive pricing strategy not only helps prospective homeowners but also strengthens HSBC’s position as a competitive player in the mortgage market and one of the UK’s big six lenders. With rates hitting new lows, borrowers can lock in affordable mortgages and enjoy long-term financial stability.

Speak To A Mortgage Expert About Low Interest Rate Mortgages

HSBC’s decision to offer sub-5% interest rate mortgages is a game-changing development in the mortgage market. With substantial rate reductions and enticing cashback incentives, the bank has put homeownership and property investment within reach for many. The best way to explore these newly released low interest rates is by speaking to and consulting with a qualified mortgage broker. At Oportfolio we can help you to navigate the complicated mortgage market. Call or drop us an email today to see how we can help.

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