"Lenders want the business and I think this is going to continue for the foreseeable future."
HSBC UK has announced a series of rate cuts across its residential mortgage range, effective from tomorrow.
For existing customers switching or borrowing more, selected five-year rates between 60-75% LTV have decreased.
In its residential range for first-time buyers or home movers, two-year fixed rates between 60-90% LTV have been lowered, alongside three-year fixes at 60% LTV and five-year fixes between 60-90% LTV.
Residential remortgage products across two, three and five-year fixed terms have also been lowered.
UK news agency, Newspage, asked brokers for their views.
Elliott Benson, owner and mortgage broker at Sett Mortgages, said: "Even more rate reductions, which is great news for people starting to look to buy and also those who may have started the remortgage process in the last six months who can now potentially switch to a cheaper rate before completion. Lenders want the business and I think this is going to continue for the foreseeable future. The difficulty at the moment is I don't think it has caught on yet that fixed rates are steadily reducing. Given the focus on base rate increases, the general assumption among the public is that fixed rates are increasing, too."
Lee Gathercole, co-founder at Rebus Financial Services, commented: "It's great to see big banks like HSBC continue to review their mortgage rates. HSBC are probably one of the best banks when it comes to this. It will be welcome news for current homeowners and first-time buyers. Hopefully other lenders will take a leaf out of HSBC's book."
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, said: "This is another step in the right direction as mortgage rates continue to fall, although we must be mindful that this could be a short-lived reprieve if the Bank of England continues to increase the base rate next month. We've seen several changes in lending policy, such as lenders opting to allow longer terms and expanding the types of income they will allow, which all point to lenders trying to be more flexible as their lending volumes decrease and they seek to get more new business on the books. This shows that reduced housing and mortgage market demand is now starting to bite, and banks are looking for any way to keep the wheels turning as the growing clouds above the economy are slamming the brakes on borrowing."
Ranald Mitchell, director at Charwin Private Clients, added: "More in the tit-for-tat rate race between the bigger lenders. There is a determination not to be outdone by competitors and long may it continue. With these continued reductions you have to wonder why pricing was placed so high in the first place."
