"With large numbers of borrowers anxiously approaching the expiry of a fix taken during the ultra low rate period, this is a welcome move and hopefully a signal for more lenders to follow suit"
- David Hollingworth, associate director at L&C Mortgages
HSBC is the latest high street lender to cut its fixed mortgage rates.
Its new rates are effective from Thursday 4th January and brings its five-year fixed rate for remortgage customers below 4% with a headline rate of 3.94% for those borrowing up to 60% LTV.
A two-year fixed rate for remortgages will dip below the 4.50% threshold for the first time since early June last year, with the headline rate hitting 4.49%, again at 60% LTV. Those looking to fix longer term could switch to a ten-year fixed rate starting from 3.99%.
David Hollingworth, associate director at L&C Mortgages, commented: “These cuts are just the latest salvo in an increasingly fast-moving market. These rates are offering some of the lowest rates since the spike in rates last summer. Although borrowers coming to the end of their current fixed rate this year will still be looking at a rise in payments, these new lower rates will at least take some of the sting out of the inevitable rise.
"HSBC’s move is notable in that its rates are on offer to those borrowers looking to remortgage, a departure from the recent trend of pricing favouring homemovers. With large numbers of borrowers anxiously approaching the expiry of a fix taken during the ultra low rate period, this is a welcome move and hopefully a signal for more lenders to follow suit, improving options for those facing payment shock.
"These cuts follow hot on the heels of New Year improvements by Halifax and others will be bound to follow suit. We thought the New Year would start with a bang and that’s proving to be the case.”
