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HSBC gears up for mortgage rate cuts across entire range

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  • 25/06/2024
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HSBC gears up for mortgage rate cuts across entire range
HSBC follows the lead of other major lenders by announcing mortgage rate cuts following the Bank of England’s decision to hold the base rate at 5.25% during June's Monetary Policy Committee (MPC).

The bank is set to cut rates across its product transfers, deals for existing borrowers looking to increase their mortgage loans, new customers, remortgages and buy-to-let investors.

The majority of rate cuts are available up to 90% loan to value (LTV) with the exception of buy-to-let mortgages.

Rate cuts will be applied to the bank’s five-year fixed fee saver deal for switching customers up to 95% LTV.

The rate cuts, which have yet to be announced, will be available from tomorrow.

A HSBC spokesperson said: “We are firmly focused on helping customers onto or up the property ladder. There are a number of factors that are taken into account when setting mortgage rates, and following a review, we are reducing over 300 mortgage rates across our residential and buy-to-let mortgage ranges, from tomorrow.”

Earlier this week, Barclays cut rates for selected existing residential borrowers and across its green mortgage range.

The MPC chose to maintain the base rate at its current level of 5.25% for the seventh month running with a vote of 7-2, despite inflation returning to its 2% target this month.

The decision to hold the base rate came as a disappointment to the industry and to borrowers. Mortgage professionals said it looked likely the central bank was waiting for wage and services inflation to full further before adjusting the base rate.

However, economists are still banking on a base rate cut this summer.

The MPC is next due to meet on 1 August.

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