HSBC’s rate changes will affect both new and existing customers
HSBC has said it will implement a series of mortgage rate increases starting tomorrow, impacting a wide range of its residential and BTL mortgage products. This move follows similar rate adjustments by other lenders, which have been responding to higher funding costs and shifts in market dynamics.
The upwards pressure is influenced by recent fluctuations in gilt yields. These increasing gilt yields indicate investor concerns, impacting swap rates that are the key to setting mortgage prices. Brokers suggest that these rising costs, despite a recent BoE rate cut, have prompted lenders such as HSBC, TSB, and Santander to adjust their mortgage rates upward.
Starting tomorrow, HSBC’s rate changes will affect both new and existing customers. Borrowers looking to switch, renew, or borrow additional funds on residential mortgages will experience increases across various LTV tiers, especially on two-, three-, five-, and 10-year fixed-rate Fee Saver and Standard products. LTV options range from 60% to 95%, meaning customers across different borrowing levels will be affected.
These hikes also notably affect FTBs and home movers. Customers in these categories will see rate adjustments on two- and five-year fixed products within the Fee Saver and Standard ranges, with options spanning 60% to 95% loan-to-values. High-value mortgage offerings at 60%, 70%, and 75% loan-to-value will also face increases, impacting customers seeking larger loans.
In line with the trend toward supporting energy-efficient properties, rates for properties rated A and B on the EPC will also increase. HSBC’s two- and five-year fixed products for energy-efficient homes will see increases across several loan-to-value options. This move reflects the wider industry’s shift in response to evolving environmental standards.
Remortgage clients will also be affected, as HSBC applies rate changes to its two- and five-year fixed Fee Saver, Standard, and high-value remortgage products. These adjustments cover loan-to-value brackets between 60% and 90% and include remortgage options with cashback incentives.
HSBC’s BTL products are also part of the upcoming rate increase, affecting both switching and additional borrowing options. The changes include two- and five-year fixed rates at 60%, 65%, and 75% loan-to-value, with some products featuring fixed fees of £1,999 and £3,999.
Moreover, HSBC’s international customers with UK residential mortgages should prepare for rate increases across various fixed Fee Saver and Standard mortgage products, with loan-to-value bands of 60%, 70%, and 75%. International BTL customers will face similar changes for loan-to-value brackets between 60% and 75%.