HSBC has launched a sub-4% residential mortgage amid a range of fixed-rate cuts for new and existing customers.
The high street bank offers a 3.98% five-year fix at 60% LTV, with a £999 fee, for its first-time buyer and home mover premier customers.
It also offers a 3.99% five-year remortgage fix at 60% LTV, with a £999 fee, for premier customers.
Trinity Financial product and communications director Aaron Strutt says: “Just when we thought it was all over for sub-4% fixes for a while HSBC has topped the best buy table with a 3.98% five-year fix.
“While the rate is really good, it is not going to be as widely available to borrowers because of the high minimum income qualification requirement.
“The good news is that HSBC’s move shows the lenders can still offer really cheap mortgages despite the ongoing uncertainty driven by inflation and mixed messaging about the number of base rate cuts we will get this year.”
The move from HSBC comes along with a range of other residential and landlord reductions for new and existing borrowers in the UK and abroad.
Other highlights include:
- Residential rates cut by up to 20 basis points — 60% LTV two-year remortgages, with £999 fee down, down by 20bps to 4.19%
- Remortgages for five-year terms at 60% LTV, with a £999 fee down by 14bps to 4.05%
- But-to-let – fee savers, with no product charge, down by 16bps at between 65% LTV to 75% LTV. Existing customers switching to a new rate see a reduction of up to 19bps, with £1,999 fee
HSBC UK director of mortgages Oli O’Donoghue says: “We are firmly focused on helping people achieve their home ownership goals, from remortgaging their existing property to customers moving onto or up the property ladder.”
