Jade Pinkerton and Louis Mason from Oportfolio Mortgages discuss rate reductions with HSBC.
In another positive step forward for the UK mortgage market, mortgage titan HSBC have announced that as of Monday the 3rd of April they will be reducing rates on all of their initial rate products. This great move forward for the lender comes after a period of mortgage rate uncertainty following the Bank of England raising interest rates last week.
What Are The Changes To HSBC Mortgage Rates?
An email to all mortgage brokers today announced some exiting new reduced rates across their loan to value offerings. The actual rates for the products have not been released yet, but here is a breakdown of which products are being changed on Monday:
Existing residential customer switching
- 2 & 3 Year Fixed Fee Saver at 60%, 70% and 75% LTV reduced
- 2 & 3 Year Fixed Standard at 60%, 70% and 75% LTV reduced
- 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85%, 90% and 95% LTV reduced
- 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
Existing residential customer borrowing more
- 2 & 3 Year Fixed Fee Saver at 60%, 70% and 75% LTV reduced
- 2 & 3 Year Fixed Standard at 60%, 70% and 75% LTV reduced
- 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
Residential first time buyer / home mover
- 2 & 3 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 2 Year Fixed Standard at 60%, 70%, 75%, 80% and 85% LTV reduced
- 3 & 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 5 Year Fixed Fee Saver at 60%, 70%, 75% and 80% LTV reduced
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
Residential remortgage
- 2, 3 & 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 2, 3 & 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV reduced
International residential
- 2, 3 & 5 Year Fixed Fee Saver at 60%, 70% and 75% % LTV reduced
- 2, 3 & 5 Year Fixed Standard at 60%, 70% and 75% LTV reduced
- 5 Year Premier Exclusive at 60%, 70% and 75% LTV reduced
Changes To HSBC’s Standard Variable Rate
Interestingly HSBC have also announced the following message which isn’t as good news:
Our BTL (Buy-to-let) SVR is changing from 6.85% to 7.10%. Any customers who are currently on our BTL SVR will be notified of changes to their payments in writing.’
It is unclear at this moment in time why the bank are increasing their standard variable rate, however senior mortgage and protection advisor at Oportfolio Jade Pinkerton thinks that “It is probably a move that just makes HSBC’s SVR more in line with the rest of the market as most lenders have quite high SVR products at the moment.” Commenting on the changes and reductions to the lender’s other products, Jade goes on to say “This is such good news and a good indication for things to come. HSBC are competitively priced already, but they are now reducing every single initial rate! It is fairly unusual for banks to reduce rates when the base rate has just gone up. But it has given me great confidence in the market, and will no doubt bring people peace of mind that rates are settling.”
If you or anyone else you know is interested in the newly reduced HSBC mortgage rates, please feel free to give our team a call for a free initial mortgage consultation conversation.
