HSBC cuts mortgage rates following weeks of rises: Are there cheaper deals to come?
HSBC has cut some mortgage rates by up to 0.19 percentage point after weeks of increases by major lenders. The move brings some deals below 5 per cent and may prompt competitors to follow, though borrowers still face rates well above those available earlier in the year.
HSBC’s cheapest two-year remortgage fix is 4.99 per cent for customers with at least 40 per cent equity, with a £999 fee. Buyers with a 20 per cent deposit can get a two-year fix at 5.19 per cent, also with a £999 fee and £250 cashback. Sub-5 per cent rates are generally limited to borrowers with large deposits or equity; experts say inflation concerns and possible Bank of England rate rises make steep mortgage-rate cuts unlikely soon.
- HSBC has cut rates by up to 0.19 percentage point.
- Its cheapest two-year remortgage fix is 4.99 per cent.
- Experts expect no dramatic falls soon amid rate-rise concerns.
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A mortgage is a loan used to buy a home, and the interest rate affects how much a borrower repays. A fixed-rate deal keeps the rate unchanged for a set period, often two or five years; when that period ends, borrowers usually need to choose a new deal or move to their lender’s standard rate.
The rate offered depends partly on how much of the property’s value the borrower can cover with a deposit or existing equity. People borrowing a smaller share of the value may qualify for lower rates, while fees and cashback can also affect the overall cost of a deal.
Mortgage pricing is influenced by lenders’ funding costs and expectations for the Bank of England’s interest rates, which are set to help control inflation. Changes by a large lender such as HSBC can affect the deals available across the market, but other lenders set their own prices and may not follow immediately.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
HSBC’s cuts could mark an early easing after weeks of increases, and competitors may respond to remain attractive to borrowers. Even modest reductions can improve affordability, while further cuts could follow if market conditions settle.
The case against
The reductions are limited and leave many borrowers facing rates above 5 per cent, with the cheapest deals reserved for those with substantial equity or deposits. Inflation concerns and the possibility of Bank of England rate rises make a broad or rapid fall in mortgage rates uncertain.