HSBC introduces differential rates by borrower type

HSBC introduces differential rates by borrower type


The bank previously standardised rates across products, meaning first-time buyers, home movers and remortgagors were offered similar pricing.  

As of today, residential products for first-time buyers and home movers have been reduced by up to 0.30 per cent.  

This includes the two-year fixed 90 per cent loan to value (LTV) product with a £999 fee, which has been reduced by 0.30 per cent to 2.99 per cent. The fee saver equivalent received an equal reduction and is now priced at 3.19 per cent. 

The two-year fixed 90 per cent LTV product with a £999 fee was cut also by 0.30 per cent, to 1.99 per cent, and the alternative at 85 per cent LTV was reduced by 0.20 per cent to 1.74 per cent. 

For remortgaging customers, the two-year fixed product at 90 per cent LTV with a £999 fee was reduced by 0.15 per cent to 2.14 per cent, while the fee-free option has been cut from 2.49 per cent to 2.44 per cent. 

The lender’s product transfer deals are also now 0.10 per cent cheaper than equivalent mortgages for new borrowers and buy-to-let deals have been reduced by up to 0.15 per cent.

Elsewhere, rates for two and five-year fixed fee saver products at 70 and 75 per cent LTV have increased, as have standard and premier exclusive rates at 60, 70 and 75 per cent LTV.

Michelle Andrews (pictured), HSBC UK’s head of buying a home, said: “I am pleased to confirm that we have introduced differential pricing by buyer type which will enable us to be more dynamic in our approach to help more customers, whether this be taking their first step on the property ladder or looking to remortgage their existing property for a lower monthly cost.

“Also, by expanding our mortgage range and moving away from a one-size-fits-all approach to mortgage rates, existing customers will also be able to benefit from enjoying the very best of our mortgage rates through our switcher range of products”.