This is the deal at 60 per cent loan to value (LTV) which is now priced at 4.97 per cent following a 0.17 per cent reduction. This has a £999 fee.
Last week, Nationwide claimed to be the first major lender to offer a two-year fix with a rate below five per cent after a similar deal at 60 per cent LTV, which also has a £999 fee, was reduced by 0.25 per cent to 4.99 per cent.
HSBC’s fee-free two-year fixed alternative at the same tier has also been lowered by 0.17 per cent and is priced at 5.23 per cent.
The largest reductions have been made to HSBC’s two-year fixes at 90 to 95 per cent LTV, which have been cut by 0.46 per cent and now have a rate of 6.11 per cent with no fee and 5.85 per cent with a £999 fee.
Other significant reductions include the lender’s five-year fixes at 90 to 95 per cent LTV, which have been cut by 0.36 per cent to 5.46 per cent with no fee and 5.35 per cent with a £999 fee.
Changes apply from 15 November.
HSBC reduces rates
HSBC has also reduced its mortgage rates across residential and buy-to-let options.
Reductions will apply to two, three and five-year fixes for remortgage, customer switching, first-time buyers, purchasers and home movers.
The lender now has a two-year fix at 60 per cent LTV for purchase and home movers with a rate of 4.98 per cent, down 0.16 per cent. This has a £999 fee. The five-year fixed alternative has been reduced by 0.1 per cent to 4.59 per cent.
For remortgage, the two-year fix has been cut by 0.13 per cent to 5.14 per cent at 60 per cent LTV with a £999 fee, while the fee-free five-year fix at the same tier has been reduced by 0.21 per cent to 4.99 per cent.
For existing customers who are switching rate, HSBC has lowered its five-year fix option at 60 per cent LTV by 0.15 per cent to 4.54 per cent. This has a £999 fee.
Within its buy-to-let offering, a two-year fixed home mover mortgage at 60 per cent LTV has been cut by 0.05 per cent to 5.34 per cent, while the remortgage equivalent has been reduced by 0.1 per cent to the same rate. Both have a fee of £1,999.
Changes will be made to deals between 60 and 90 per cent LTV, and will come into effect from tomorrow.
An HSBC UK spokesperson said: “We are here to support our customers and we remain committed to offering the best possible rates to all our customers. That is why we are pleased to announce cuts to mortgage rates across all our UK residential and international mortgage ranges, and across our buy-to-let range, for new and existing customers. These changes mean there are now over 20 mortgage options under five per cent for customers, the most we have offered under this level for five months.”