HSBC announced another round of mortgage rate cuts this week in its “pledge” to offer the “best possible” deals.
Rates were cut an average of 0.15 percent on Wednesday, with some seeing drops of as much as 35 percent.
A spokesman for HSBC UK said: “We are here to support our customers and remain committed to offering the best possible rates to all our customers.
“That’s why we’re delighted to announce mortgage rate cuts across all our UK residential and international mortgage ranges, and across our Buy to Let range, for new and existing customers.
“These changes mean that there are now over 20 mortgage options below five per cent for customers, the most we have offered below this level in five months.”
The full list of new mortgage rates can be found herebut a brief overview of reductions is as follows:
Residential purchase/home mover:
- Two-year LTV reduced by 60 per cent at 4.98 per cent (£999) by 0.16 per cent
- 60 per cent five-year LTV at 4.59 per cent (£999) reduced by 0.10 per cent
- Two-year LTV reduced by 85 per cent at 5.74 per cent (no fee) 0.14 per cent
- 90 per cent five-year LTV at 5.09 per cent (£999) reduced by 0.05 per cent
- Two-year LTV reduced by 60 per cent at 5.14 per cent (£999) by 0.13 per cent
- Five-year LTV down 60 per cent at 4.99 per cent (no fee) 0.21 per cent
Buy to let house move:
- Two-year LTV reduced by 60 per cent at 5.34 per cent (£1,999) by 0.05 per cent
Buy To Let remortgage:
- Two-year LTV of 60 per cent at 5.34 per cent (£1,999) reduced by 0.1 per cent
Current (residential) customer change:
- Five-year 60 per cent LTV was down 0.15 per cent at 4.54 per cent (£999).
Brokers have welcomed the move, saying it represents a positive change in the market and they are preparing for a busy end to the year as activity levels pick up.
Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgagesto write on the platform news page: “Further rate cuts from HSBC are greatly appreciated, particularly those in the higher loan-to-value brackets. This should start another round of rate cuts, some before and some after the expected good news on inflation due this week. With each passing day, there are more reasons to be positive in the mortgage market.”
Elliott Culley, director at Change Mortgage Financesaid: “It’s no surprise to see a lender of HSBC’s size and stature continuing to cut its rates.
“Swap rates are continuing to decline as more positive data is released on cooling inflation and base rate stability. Expect others to follow.”
Halifax, Yorkshire Building Society, Virgin Money, Bank of Ireland UK and Bank of Ireland UK Intermediaries also revealed new two-year fixed mortgage rates below five per cent this week.
According to analysis by Moneyfactscompare.co.uk only one lender had two-year fixed mortgages priced below 5 percent at the start of November, and no lenders were offering one at the start of October.
Rachel Springall, financial expert at Money Facts said: “It’s encouraging to see cheaper mortgages on the market for borrowers, particularly back on two-year fixed mortgages priced below five per cent.
“This is great news for those who don’t want to commit to a fixed, longer-term deal. Many major lenders have reduced fixed mortgage rates and further cuts are widely expected in the coming weeks. As we get closer to the end of the year, lenders will be weighing up the current competition and their own lending goals, so it’s a promising market for consumers looking for a new deal.”
Ms Springall added: “As always, it is vital that borrowers consider the true full cost of any mortgage deal rather than assuming that the lowest rates are the best option, as some have high fees or few incentives the lowest markets.
“It is wise to seek independent advice to consider all options, particularly if borrowers have limited cash upfront to pay for any product fees or legal costs.”
Denial of responsibility! vismuseum.org.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at email@example.com The content will be deleted within 24 hours.