Effective from tomorrow (Wednesday 7th August), HSBC will implement several changes to its residential and buy-to-let (BTL) mortgage product ranges.
For existing residential customers looking to switch or borrow more, HSBC will decrease rates for 2-, 3-, and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% loan-to-value (LTV).
The 5-year Fixed Premier Exclusive at the same LTV tiers will also see rate decreases.
First-time buyers and home movers will experience rate decreases on 2-, 3-, and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% LTV.
However, there will be rate increases for the 2-year Fixed Fee Saver at 95% LTV, 2 and 5-year Fixed Standard at 90% LTV, and 5-year Fixed Fee Saver at 90% and 95% LTV.
The 5-year Fixed Premier Exclusive at 90% LTV will also increase, while the same product at 60%, 70%, and 75% LTV will decrease.
For first-time buyers and home movers with energy-efficient homes with an Energy Performance Certificate (EPC) rating A and B, the changes mirror those for standard properties, with rate decreases for 2-, 3-, and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% LTV.
Rates will increase for the 2-year Fixed Fee Saver at 95% LTV, 2 and 5-year Fixed Standard at 90% LTV, and 5-year Fixed Fee Saver at 90% and 95% LTV.
Residential remortgage customers will see rate decreases for 2, 3, and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% LTV.
The 5-year Fixed Premier Exclusive at these LTV levels will also decrease.
For residential remortgage customers with cashback options, rates will decrease for 2 and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% LTV.
Energy-efficient residential remortgage options will follow similar trends, with rate decreases for 2-, 3-, and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% LTV.
BTL existing customers looking to switch or borrow more will benefit from rate decreases for 2- and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 65%, and 75% LTV.
Similar decreases apply to BTL purchase products.
For BTL remortgage products, rates will decrease for 2-year Fixed Fee Saver at 60% and 65% LTV, 2-year Fixed Standard at 65% and 75% LTV, and 5-year Fixed Fee Saver and Standard at 60%, 65%, and 75% LTV.
In addition, international residential customers will see rate decreases for 2, 3, and 5-year Fixed Fee Saver and Fixed Standard products at 60%, 70%, and 75% LTV.
The 5-year Fixed Premier Exclusive at these LTV levels will also decrease.
However, international BTL products will experience rate increases for the 2-year Fixed Fee Saver at 60% and 65% LTV, 2 and 5-year Fixed Standard at 60%, 65%, and 75% LTV, and 5-year Fixed Fee Saver at these LTV levels.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “HSBC has responded to recent competitor activity by adjusting the pricing across their products, showcasing a proactive approach in the market.
“The big question now is whether NatWest’s offer of a 3.97% rate with a £1,495 fee will remain on top.
“NatWest recently made a slight adjustment to outpace Nationwide.
“Is it too early to anticipate a lender offering a sub-4% rate with a £999 fee? We’ll find out tomorrow.
“The competitive landscape is heating up, promising great opportunities for borrowers!”
