HSBC UK has introduced a significant round of mortgage rate cuts across nearly its entire range, reducing rates by up to 0.24%. This move follows a comprehensive review and comes as the bank looks to offer better value to home buyers, those remortgaging, and existing customers reaching the end of their current mortgage terms.
With these changes, HSBC has launched several new mortgage deals offering rates below 4%. These sub-4% options add to the existing low-rate deals already available for HSBC Premier customers. The expansion of the sub-4% range reflects HSBC’s ongoing commitment to providing competitive products in what remains a challenging property market for many.
The latest reductions apply to a wide variety of products, including mortgages for home purchases, remortgages, buy-to-let deals, and international residential mortgages. It marks the largest number of sub-4% deals offered by HSBC since September 2024, signalling a positive move for customers looking to secure lower rates amid ongoing uncertainty about future interest rate trends.
Premier customers will benefit from two-year fixed rates starting at 3.88% for loans up to 60% loan-to-value (LTV), with a £999 arrangement fee. Rates for five-year fixed products for Premier clients have also seen notable reductions. Meanwhile, non-Premier customers now have access to two-year fixed rates beginning at 3.91% at 60% LTV, and five-year fixed rates starting from 3.93%. Both these rates have been reduced by 0.19%.
In addition, HSBC’s buy-to-let mortgage range has seen rate cuts of up to 0.12%. Investors can now access sub-4% options, including a 60% LTV remortgage deal priced at 3.91%. However, this particular deal carries a relatively high £3,999 fee, which borrowers will need to factor into their overall cost calculations.
International customers have not been left out either. HSBC has reduced rates on its international residential mortgage products by as much as 0.20%. The most attractive option is now a three-year fixed rate mortgage at 60% LTV, priced competitively at 4.31%.
Oli O’Donoghue, director of mortgages at HSBC UK, commented on the changes, saying:
“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. There are a number of factors taken into account when setting mortgage rates and following a review we are pleased to announce rate reductions across our residential, buy-to-let and international mortgage ranges for new and existing customers, with several below 4.00%.”
He added that the latest reductions are designed to support a wide range of customers in achieving greater financial flexibility during a time when housing affordability remains a major concern for many across the UK.
The decision to lower rates significantly comes as competition among lenders intensifies. With affordability stretched and transaction volumes lower than pre-pandemic levels, lenders like HSBC are seeking to stand out by offering more attractive deals. These moves could also help stimulate greater activity within the housing market, encouraging both new buyers and those considering refinancing to make a move.
For many borrowers, particularly first-time buyers and those looking to move up the property ladder, securing a fixed rate below 4% could mean significant savings over the term of their mortgage. As inflation continues to ease and interest rate expectations remain uncertain, securing a favourable mortgage deal is increasingly seen as a top priority.
Overall, HSBC’s latest changes strengthen its position in the market, offering a broad range of competitive mortgage products that cater to the diverse needs of UK homeowners, landlords, and international buyers.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property