HSBC and TSB announced cuts, following on from Virgin Money yesterday
High street lenders are responding to both competition and cheaper wholesale money costs, with major lenders announcing further mortgage rate cuts.
This morning, both HSBC and TSB announced cuts, following on from Virgin Money yesterday.
HSBC has launched new purchase exclusives at 65 per cent and 75 per cent loan-to-value with two-year fixes starting at 4.97 per cent and five-year fixes from 4.53 per cent. Products come with a £1,295 fee and £500 cashback. Purchase exclusive fee-saver products with £300 cashback have also launched from 5.33 per cent fixed for two years and 4.68 per cent fixed for five years.
In HSBC’s current range, purchase exclusives at 85 per cent and 90 per cent loan-to-value have reduced by up to 12 basis points and now start from 4.81 per cent, while two and three-year core residential rates have reduced by up to 0.30 per cent.
Purchase exclusive £1m+ fixed rates have dropped by up to 51 basis points to start from 4.95 per cent and BTL rates have dropped by up to 0.20 per cent.
TSB has announced further reductions to residential fixed rate products for both home movers and remortgage customers. Its affordable housing range, which includes shared ownership and shared equity products, has seen reductions of up to 0.85 per cent, while two, three and five-year purchase and remortgage rates have dropped by up to 0.30 per cent.
Highlights from Virgin include a 4.99 per cent two-year fixed remortgage up to 70 per cent loan-to-value with a 1 per cent fee, and a 90 per cent loan-to-value five-year fixed purchase mortgage at 4.96 per cent with a £1,295 fee.
Kylie-Ann Gatecliffe, director at KAG Financial, said: Lenders are having to be more competitive than ever to stand out right now, as the rate reductions keep coming. These latest cuts are great news for those looking to get on the ladder, move or remortgage. It has been a difficult year so it is great to see it ending with a rate war. Hopefully, it will continue into the new year, to let more buyers bounce back with confidence of a more affordable outlook.