The reprice impacts both existing customers and new borrowers, affecting various LTV tiers across fixed rate terms and product categories
HSBC UK is adjusting rates across a range of its residential mortgage products, with the new changes taking effect from tomorrow.
The reprice impacts both existing customers and new borrowers, affecting various LTV tiers across fixed rate terms and product categories.
For existing customers looking to switch rates, the bank has announced that the two-year fixed fee saver product at 60% LTV will see a rate drop, while the same product at 70%, 75%, 80%, 85%, and 95% LTV will have higher rates. Moreover, the five-year fixed fee saver and five-year fixed standard products will have rate hikes across most loan-to-value brackets. Premier exclusive products in the five-year fixed category will also see rate increases from 60% up to 90% LTV.
Customers wishing to borrow additional funds will experience similar changes, with rate drops on the two-year fixed fee saver at 60% LTV but hikes for other loan-to-value bands and across other fixed rate products.
For FTBs and home movers, one of the UK’s biggest mortgage lenders has reduced rates on several two-year fixed products in lower LTV bands of 60%, 70%, and 75%, while increasing them at higher loan-to-value tiers such as 80%, 85%, and 95%. Meanwhile, most five-year fixed rate options, including high-value mortgage products, will see rate hikes.
Borrowers buying energy-efficient homes, defined as properties with an energy performance certificate (EPC) rating of ‘A’ or ‘B’, will face a mixed picture. The two-year fixed options at lower LTVs of 60%, 70%, and 75% are cut, but higher loan-to-value tiers for both two- and five-year fixed options are set to rise.
Remortgaging customers, including those eligible for cashback or with energy-efficient properties, will find higher rates across two- and five-year fixed products in nearly all loan-to-value categories. Similar hikes will apply to high-value mortgages in these segments.
For international residential customers, the high street lender is also increasing rates. The two-year fixed fee saver and five-year fixed standard products will have rate hikes at loan-to-value levels of 60%, 70%, and 75%.