Within its existing residential customer switcher, two and three-year fixed fee-saver and standard products up to 90 per cent loan to value (LTV) will fall.

Its five-year fixed fee-saver between 80 and 95 per cent LTV will go down, along with standard and premier exclusive products between 80 and 90 per cent LTV.

For its existing residential customers borrowing more, two and three-year fixed fee-saver and standard products up to 90 per cent LTV and five-year fixed fee-saver, standard and premier exclusive between 80 and 90 per cent LTV will go down.

Residential first-time buyer and home mover deals have been cut, including its two-year fixed fee-saver and standard deals up to 95 and 90 per cent LTV which will fall.

Within that three and five-year fixed fee-saver products between 80 and 95 per cent LTV, and standard products from 80 to 90 per cent LTV will go down.

Five-year fixed premier exclusive from 80 to 90 per cent LTV will also fall.

In its residential remortgage range, the two-year fixed fee-saver, three and five-year fixed standard and five-year fixed premier exclusive up to 75 per cent LTV will decrease.

Two-year fixed rate standard between 60 and 90 per cent LTV and three-year fixed fee-saver at 60 per cent LTV will fall.

On the residential remortgage cashback side, the two-year fixed fee-saver and five-year fixed standard up to 75 per cent LTV will go down along with two-year fixed standard products up to 90 per cent LTV.

In its international residential range, two-year fixed fee-saver, two, three and five-year fixed standard and five-year fixed premier exclusive products up to 75 per cent LTV will reduce. Three-year fixed fee-saver deals at 60 per cent LTV will be cut.

Within existing buy-to-let customer switching and borrowing more and buy-to-let purchase and remortgage, two and five-year fixed fee-saver and standard products up to 75 per cent LTV will decrease

TSB to reduce resi rates

TSB will lower rates from tomorrow by up to 0.85 per cent, including purchase, remortgage and affordable housing deals.

Its two-year fixed house purchase up to 85 per cent LTV will fall by up to 0.3 per cent, and two-year fixed house purchase between 90 and 95 per cent LTV will go down by up to 0.05 per cent.

Three-year fixed house purchases up to 75 per cent LTV will decrease by up to 0.3 per cent, along with five-year fixed house purchase deals up to 75 per cent LTV.

Two, three and five-year fixed remortgage products will reduce by around 0.3 per cent whilst shared ownership, shared equity, house purchase and remortgage deals will fall by up to 0.85 per cent.

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.”

A PCC is a legal document that confirms a project has been completed satisfactorily then reviewed and signed off by a qualified architect or surveyor.

Currently HSBC criteria says that a PCC is not acceptable for a new build property, other than where the property is a conversion and has not had full structural alterations.

According to a broker note, from 4 December, PCCs will be eligible for newly built homes within a development of no more than 10 properties.

The note added that if the property is a flat or maisonette, a PCC needed to be available for the “common parts and the structure of the building” if these are part of the new build/conversion works.

HSBC continued that the conveyancer would need to ensure that the new home warranty, whether a PCC or Structural Defects Warranty, meet the criteria confirmed in the UK Finance Mortgage Lenders Handbook.

This includes its two-year fixed purchase and home mover product for residential borrowers at 60 per cent loan to value (LTV) which has gone down by 0.1 per cent to 5.14 per cent. The corresponding five-year fix has been cut by 0.05 per cent to 4.69 per cent. 

Both products have a £999 fee. 

There is also the residential remortgage deal which is fixed for two years and available at 75 per cent LTV, which has been reduced by 0.25 per cent to 5.39 per cent. This has a £999 fee. 

For first-time buyers, the five-year fix at 60 per cent LTV with a £999 fee has been reduced by 0.05 per cent to 4.69 per cent. 

HSBC has reintroduced its fee-free three-year fix at 95 per cent LTV for first-time buyers. This has a rate of 6.39 per cent and offers £350 cashback. 

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.  

“We are also bringing back our no fee three-year fixed at 95 per cent LTV for UK residential Home Mover and first-time buyer customers, both of which come with a cashback incentive of £350. This gives our customers who are looking to move onto or up the property ladder or are renewing a mortgage with us an additional option.” 

TSB reduces rates 

TSB has reduced rates by up to 0.3 per cent across its two and five-year fixed buy-to-let mortgages.  

This includes purchase and remortgage, product switch and additional borrowing deals. 

Rates start at 5.39 per cent for a two-year fixed purchase product at 60 per cent LTV with a £1,995 fee, or 5.09 per cent for the five-year fixed alternative. 

The lender has also added a two-year fixed product to its residential purchase range at 85-90 per cent LTV. 

This has a £995 fee and is priced at 5.64 per cent. 

Research from HSBC revealed that nearly seven out of ten people who are hoping to buy their first home in the next 12 months are now more certain of achieving that goal, compared to findings at the start of the year.

The reasons behind the buying decision were varied, with just over a fifth of first-time buyers saying that it is cheaper than renting.

Gaining more independence was the next most popular reason to buy with 20 per cent saying this was their primary motivation.

Financial security (17 per cent) and providing for their family (14 per cent) were the next two most popular reasons to purcahase their own home.

One in nine said the main reason using their first home as an investment.

Regional differences

The level of confidence varied by region.  First-times buyers in Wales (64 per cent) and Yorkshire and Humberside (63 per cent) were most confident of being able to afford a new home.

The levels dropped to 53 per cent in the North East and Northern Ireland and 52 per cent in the East Midlands

Finding a mortgage provider

Using an adviser was the most popular way to receive information about the mortgage market, with 41 per cent taking the broker route. Just under a third (30 per cent) went directly to a mortgage provider website, while 28 per cent used comparison sites.

When it came to picking the lender of choice, cost was the number one driver (32 per cent). Next came a recommendation from a broker or adviser (31 per cent), while 26 per cent opted for a brand that had gained their trust.

Just over a fifth said that chose a lender because it was their existing bank or building society.

A recommendation from family or friend was the least most popular reason for choosing a provider with just 11 per cent taking this option.

‘Shift in attitude is reassuring’

Andrew Matson,  the head of mortgages at HSBC UK said: “It’s encouraging to see more optimism amongst first-time buyers.

“The first half of this year has been challenging, but the shift in attitudes is reassuring and highlights the resilience of the housing market.

“While we don’t have a crystal ball to see what the future holds, it is pleasing to see the positive sentiment running throughout our research and we will continue to lean in to help support our customers.”

Barclays is cutting the rates on offer on a selection of its residential purchase and reward ranges, effective from 1 November. 

The cuts are by as much as 26 basis points.

Examples include a two-year fixed rate, available up to 60 per cent LTV with an £899 fee. Its rate is dropping from 5.36 per cent to 5.10 per cent. Alongside this, a two-year fixed rate with the same fee but available up to 75 per cent LTB is falling from 5.42 per cent to 5.20 per cent.

Residential reductions at Accord

Accord Mortgages is making changes to its residential product transfer and additional loan ranges.

On two-year fixed rate deals, interest rates are being reduced by between 0.10 and 0.40 percentage points. On the five-year fixed rate range, rates are dropping by between 0.20 and 0.30 percentage points. 

The current range will be withdrawn at 8pm today, with the new range available from 8am 1 November. 

HSBC dropping rates

HSBC is making a host of changes to its residential and buy-to-let mortgage product ranges. 

For example, it is reintroducing its two-year fixed fee saver products for first-time buyer and home mover customers at 95 per cent LTV. These products include cashback of £250.

Elsewhere it is dropping the interest rates on a series of products, for both existing borrowers looking to switch or borrow more, as well as those looking to purchase or remortgage. These include the residential first-time buyer range, where rates are dropping on the fee-saver deals over two-and three-year fixed rate terms, and on the standard products across two-, three- and five-year fixed rate terms.

The product changes take effect from 1 November, so applications for older products need to be in by midnight tonight.

Halifax rejigs new build

Halifax is dropping rates on its new-build products where borrowers are seeking LTVs at above 90 per cent.

In addition, the lender is reducing interest rates across its product transfer and further advance ranges.

It is also extending the end dates and complete dates for a host of deals, including its homebuyer and remortgage range, shared ownership, selected new build and equivalent green home products.

The changes take effect from 1 November.

Mortgage lending rose in Asia by £4.9bn ($6bn) and in HSBC UK by £4.1bn ($5bn) in the nine months to 30 September.

In personal banking, global revenue of £12.7bn ($15.5bn) was up 43 per cent. Net interest income was £3.8bn ($4.6bn) or 47 per cent higher due to wider margins from interest rate rises. This was supported by lending growth in HSBC UK, and in Asia, Mexico and the US.

HSBC’s net interest rate margin, a crucial measure of lending profitability, fell to 1.7 per cent, down two basis points from the previous quarter. The bank confirmed this was due to customers locking cash away in higher interest rate paying deposit accounts and outlined the peak in interest rate rises.

HSBC UK Bank PLC, the global giant’s second most profitable country reported profits of £5.4bn ($6569m), a substantial increase on £2.8bn ($3,347m) at this point in 2022.

In Asia and the UK, mortgage lending balances grew by a combined £9.06bn ($11bn) against Q3 2022. In wholesale transaction banking, revenue increased by 50 per cent to £16.6bn ($20.2bn), primarily due to growth in net interest income from higher interest rates, it said.

HSBC growth forecasts on the up

HSBC Group GDP growth forecasts improved for most of the major markets during Q3, following better-than-expected growth in the first half of 2023.

The Group said: “In North America and Europe, economic growth has proved more resilient to higher inflation and interest rates than was previously expected. Consumption spending in particular has continued to grow despite the squeeze on real disposable income, while employment demand has also remained strong. Forecasters have raised their near-term growth expectations, and forecast dispersion and other measures of uncertainty have reduced.

“Despite the improvement in short-term forecasts, the outlook is for growth to remain weak as the lagged effects of high inflation and higher interest rates are expected to slow both household demand and business investment, while unemployment is forecast to rise moderately.

“The most significant forecast changes in Q3 were to house price expectations. Across most of our major markets, higher interest rates and the ensuing squeeze on real household incomes have significantly weakened demand, and transaction levels have fallen.”

Bryden has worked in the mortgage sector for over 26 years, joining as a broker before going on to take a number of roles at major lenders including Coventry Building Society, Santander and HSBC. 

As board member of the SMP, she will provide an insight into supporting mortgage brokers and developing relationships between lenders and intermediaries.

Bryden (pictured) said: “I am really pleased to be joining the board of the Society of Mortgage Professionals. The mortgage market is complex and dynamic, and the society works tirelessly to support mortgage professionals in the continued development of their knowledge and skills.  

“Ensuring we work to the highest professional standards to meet the needs of mortgage borrowers across the country is a value that both I and the SMP care deeply about. I look forward to bringing my experience to the board to help further strengthen the insight and support on offer and increase the profile of the great work the SMP does.”  

Carlos Thibaut, chair of the Society of Mortgage Professionals, said: “We are delighted to welcome Amanda Bryden to the SMP board. Amanda holds an impressive breadth of experience in the mortgage industry that will undoubtedly complement the existing strength of the SMP board.  

“We look forward to working alongside Amanda, and wish her every success in the role.” 

According to an FOI request sent by The Telegraph, the number of first-time buyers who have fallen behind on mortgage payments has doubled in the last year to 4,854 households due to inflation and rising mortgage rates.

Lenders also continued cutting rates, making up most of the most read list, with Nationwide, Halifax, HSBC and Fleet Mortgages just selection of firms lowering pricing.

An investigation by Mortgage Solutions into product transfer windows of the top 10 lenders also piqued readers’ interest.

Nationwide cuts tracker deals and remortgage fixes

Nationwide increases maximum LTV and LTI limits for self-employed

TSB cuts mortgage rates to below five per cent

Thousands of first-time buyers in arrears due to Help to Buy scheme stress – reports

HSBC confirms rate changes

Halifax, HSBC and Coventry BS latest lenders to lower rates – round-up

Fleet Mortgages lowers two and seven-year fixed rates

Brokers urge large lenders to stretch PT windows as many offer under six months

Where next for equity release? – Crane

L&C signs specialist finance partnership and looks to future

The lender announced that it would cut a range of rates yesterday but did not release details until today.

HSBC said residential mortgage cuts ranged from 0.1 per cent to 0.25 per cent.

For existing customer switching, pricing starts at 5.42 per cent for a two-year fixed rate with no fee at 60 per cent loan to value (LTV).

In its existing customer borrowing more range, products are priced from 5.42 per cent for a fee-free two-year fixed rate at 60 per cent LTV.

First-time buyer products begin from 5.59 per cent and home mover deals start from 5.59 per cent.

On the remortgage side, pricing is set from 5.99 per cent and international residential rates start from 6.39 per cent.

Within its buy-to-let range, buy-to-let purchase deals begin from 6.19 per cent and buy-to-let remortgage pricing starts from 6.19 per cent.

Buy-to-let existing customers borrowing more can access rates as low as 5.42 per cent along with existing customers switching rates.