"More rate cuts are welcome, and it's a sure sign that lenders are now well and truly clambering to fill their depleted loan books."
HSBC has announced that from Thursday 5th October, it is making a series of changes to its residential and buy-to-let mortgage product ranges.
For residential first-time buyers and home movers, two, three and five-year products are decreasing across a range of LTVs up to 90%.
Remortgagers and existing customers switching or borrowing more will also benefit from reductions across two, three and five-year rates up to 90% LTV.
In HSBC's buy-to-let range purchase, remortgage and existing borrrower products are all seeing reductions across a range of LTVs and fee options.
The lender also announced: “We have removed our cashback incentive offering across a selection of two and three-year fixed rates at 60%, 70% and 75% LTV for UK residential first-time buyer and home mover customers until further notice. The incentive remains available across higher LTVs for these customers.”
Brokers reacted to the rate reductions via PR platform Newspage.
Bob Singh, founder at Chess Mortgages, commented: "It’s the fourth quarter and it’s hit-targets time for lenders. We have seen wholesale cuts in pricing notably on five-year fixed rates. This is as much as we can expect to see this year unless the base rate takes a dive due to recessionary fears which, based on what’s happening across the pond, is quite likely. Bearing in mind lenders rarely lose money on fixed rates, this is a clear sign that rates could fall further in 2024. All eyes on the Tory conference for any signs of a revival in fortunes for builders and the property market."
Darryl Dhoffer, founder of The Mortgage Expert, said: “Lenders today are increasingly resembling Apple. They tell us they're reducing rates without actually telling us what the rates are for 24 hours. It won't be long before there is a live event much like you see in Silicon Valley. Either way, more rate cuts are welcome, and it's a sure sign that lenders are now well and truly clambering to fill their depleted loan books.”
