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HSBC ups resi rates due to ‘rising market funding costs’

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  • 01/03/2023
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HSBC ups resi rates due to ‘rising market funding costs’
HSBC has increased select residential rates by as much as 0.2 per cent citing “rising market funding costs”.

Residential existing customer switching, existing customer borrowing more, first-time buyer, homemover, remortgage and international residential deals have been increased.

The average increase for remortgage customers is around 0.05 per cent and the average increase for 0.03 per cent for first-time buyers.

For existing customers, rate increases range between 0.01 per cent to 0.2 per cent, with the average increase coming to less than 0.9 per cent.

The residential standard variable rate (SVR) has risen from 6.35 per cent to 6.85 per cent.

Existing customer deals start from 4.24 per cent, whilst its first-time buyer deals begin from 4.42 per cent.

Homemover deals are priced from 4.42 per cent, remortgage deals are set from 4.43 per cent.

Sub-four per cent mortgages are still available, including a five-year fixed rate at 3.94 per cent for existing customers at 60 per cent LTV with £999 fee and 10-year fixed rate at the same LTV and fee priced at 3.99 per cent. These deals are remortgage only.

Around two thirds of mortgage rates remain unchanged.

A HSBC UK spokesperson said: “There are a number of factors that are taken into account when setting mortgage rates. We have continually reduced hundreds of mortgage rates over the last few months, including rate cuts of up to 0.35 per cent last week and bringing back the first sub-four per cent mortgages since September 2022.

“Following a period of rising market funding costs there are some small increases this week on some mortgages, with two thirds of our mortgages remaining unchanged, with sub-four per cent mortgages still available.”

 

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