Changes will be made across its mortgages for first-time buyer, homemover, remortgage, switching, borrowing more and international residential borrowers.
The majority of rate reductions will apply at 60-75% loan-to-value (LTV) tiers.
For first-time buyers, the two-year fix at 95% LTV with no fee has been lowered by 0.08% to 5.33%, while a five-year fix at 60% LTV with a £999 fee has gone down by 0.04% to 4.53%.
The fee-free equivalent has been lowered by the same amount to 4.64%.
For purchases, HSBC has cut the rate of the fee-free two-year fix at 95% LTV by 0.04% to 5.3%, and the five-year fix at 75% LTV with a £999 fee by 0.06% to 4.67%. At 60% LTV, the two-year fixed purchase product with a £999 fee has been lowered by 0.05% to 4.49%.
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Meanwhile, the five-year fix at 95% LTV with no fee has been cut by 0.05% to 5.19%.
Across HSBC’s remortgage options, the fee-free two-year fix at 90% LTV has been cut by 0.05% to 5.34%, while the two-year fix at 60% LTV with a £999 fee has been reduced by 0.09% to 4.55%.
There is also the fee-free two-year fix at 60% LTV, which has been cut by 0.11% to 4.83% and the fee-free five-year fix at 75% LTV, which has been lowered by 0.07% to 4.88%.
TSB cuts mortgage rates
TSB has also lowered rates across its product transfer and additional borrowing mortgages.
Its two-year fixed residential product transfer rates up to 85% LTV have been cut by 0.1% and now start at 4.54% with a £1,495 fee at 60% LTV, up to 5.14% with no fee, at 80-85% LTV.
Meanwhile, the five-year fixed product transfer rates have been reduced by up to 0.2%, starting from 4.64% at 60% LTV with a £1,495 fee.
Across its additional borrowing rates, TSB has reduced residential two- and five-year fixed rates by as much as 0.15%.
Swap rate update
Over the last month, two-year swap rates have decreased slightly, allowing for the recent wave of mortgage rate reductions.
According to Chatham Financial, the two-year swap has fallen from 4.216% in July to 4.18% as of 26 August.
On the other hand, the five-year swap has risen, from 4.268% in July to 4.283% in August.
