HSBC will cut mortgage rates across a broad range of products, following two other major lenders this week.
The high street bank will lower residential and landlord loans across two-, three-, five- and 10-year terms from Monday (6 January) and loan to values from 60% to 95%, without giving further details on the scale of reductions.
This follows news from Halifax this week that it will make interest rate cuts of up to 35 basis points, while Leeds Building Society will reduce its rates by up to 21bps.
John Charcol mortgage technical manager Nicholas Mendes says: “HSBC’s decision to start the year with a reduction in mortgage rates across its product range is a welcome move for the housing market.
“Following the festive period, this change comes at a crucial time, as many potential home movers start reengaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.
“Today’s rate cuts span an extensive range of products, including options for existing residential customers switching, borrowing more, first-time buyers, home movers, and even energy-efficient homes.
“These reductions, covering fixed terms from two to 10 years and loan to values of up to 95%, reflect HSBC’s efforts to remain competitive and capture a diverse range of customers.
“Buy-to-let investors and international clients are also included, widening the appeal.”
