Santander did the same yesterday
HSBC slashes rates across its residential and buy-to-let mortgage range(Image: PA)
HSBC is the latest major high street lender to cut rates across its residential and buy-to-let mortgage range.
They follow Santander yesterday which reduced selected fixed and tracker rates by up to 0.3%.
For new applicants, Santander, which has branches across Birmingham and the West Midlands, will be reducing selected first-time buyer (FTB) and home mover fixed rates by up to 0.28%, while large loan home mover fixed rates will come down by up to 0.12%.
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Rate reductions of up to 0.25% will also apply to selected buy-to-let purchase fixed rates.
The new rates will be made public when they go live tomorrow, but brokers urged borrowers to not get carried away and start popping the champagne corks.
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said: “It’s hard to get overly excited about rate cuts given the current volatility in the market as today’s drops may well be tomorrow’s rises if events in the Middle East deteriorate and they are quickly pulled again.
“What’s needed more than the short-term relief of sporadic rate reductions is some stability and sustained rate reductions that stay around long enough to help borrowers.
“Earlier this week, it was revealed that the average shelf-life of a mortgage is just eight days at present and that’s a real problem.”
Louis Mason, Communications Director at London-based Oportfolio Mortgages, also welcomed the news but said things can change quickly, while also warning people against waiting for lower rates.
He said: “If this isn’t a positive signal, then I don’t know what is. The market clearly wants to believe we’re past the peak. But let’s not get carried away. Mortgage rates are still at the mercy of global drama. One geopolitical wobble or surprise inflation print and lenders will reprice faster than you can refresh your browser.
“As for buyers holding out for cheaper deals, which may happen, that rarely ends well. The irony is the moment rates dip, confidence returns, competition heats up and suddenly you’re saving 0.2% on your mortgage but paying 5% more for the property.”
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