The bank is set to reduce rates across its product transfers, deals for existing borrowers looking to increase their mortgage loans, new customers, remortgages and BTL investors
HSBC follows the lead of other major lenders by announcing mortgage rate cuts following the BoE’s decision to hold the base rate at 5.25% during June’s Monetary Policy Committee.
The bank is set to reduce rates across its product transfers, deals for existing borrowers looking to increase their mortgage loans, new customers, remortgages and BTL investors.
The majority of rate cuts are available up to 90% LTV with the exception of BTL mortgages.
Rate reductions will be applied to the bank’s five-year fixed fee saver deal for switching customers up to 95% LTV.
The rate cuts, which have yet to be announced, will be available from tomorrow.
A HSBC spokesperson said: We are firmly focused on helping customers onto or up the property ladder. There are a number of factors that are taken into account when setting mortgage rates, and following a review, we are lowering more than 300 mortgage rates across our residential and BTL mortgage ranges, from tomorrow.
Earlier this week, Barclays reduced rates for selected existing residential borrowers and across its green mortgage range.
The Monetary Policy Committee chose to maintain the base rate at its current level of 5.25% for the seventh successive month with a vote of 7-2, despite inflation returning to its 2% target this month.
The decision to hold the base rate came as a disappointment to the industry and to borrowers. Mortgage professionals said it looked likely the central bank was waiting for wage and services inflation to ease before adjusting the base rate.
Nevertheless, economists are still banking on a base rate reduction this summer.
The Monetary Policy Committee is next due to meet on 1 August.
