Over 100 HSBC mortgage interest rates cut
In good news for borrowers, HSBC announced on the 17th of January that they were reducing the interest rates on over 100 of their mortgage products.
After months of increasing rates, this is a step in the right direction for the UK mortgage industry. This will help both new and existing HSBC customers, with rates dropping by as much as 0.15% depending on the mortgage type.
Other lenders including Santander and Bluestone Mortgages have also announced rate reductions. Overall if you have a current mortgage with any of these lenders or are thinking of applying, you are in a far better position now than a few weeks ago.
On this page, we will go over what this announcement by HSBC means, which mortgages are affected and more.
In this section:
- How much are HSBC mortgage interest rates being reduced by?
- Which HSBC mortgages are affected?
- Will my current HSBC mortgage be affected?
- Should I take out a mortgage with HSBC sooner rather than later?
How much are HSBC mortgage interest rates being reduced by?
This will depend on the type of mortgage you are interested in or currently have, though rates could be slightly higher for new applicants.
Fixed rate deals are being reduced by up to 0.15%, with tracker rates dropping by up to 0.1%. Examples of some of the HSBC interest rates on offer are:
- 5.54% on a 2-year fixed rate deal at 95% loan to value (LTV)
- 4.64% on a 5-year fixed rate deal at 85% loan to value (LTV)
- 3.84% on a 2-year tracker rate deal at 60% loan to value (LTV), available at 3.79% for current customers
Tracker rates will also be affected by any changes in the Bank of England’s base rate. This means that the amount charged for repayments on your mortgage could still go up or down.
Which HSBC mortgages are affected?
Both fixed and tracker mortgages will be affected by these changes. This means you could benefit from lower rates no matter which type of mortgage is more appealing to you. Fixed rates and tracker rates each have pros and cons, so it is worth looking into both before making any decisions.
It is best to remember that when you come to the end of a fixed rate or tracker rate deal, you will be switched automatically to HSBC’s standard variable rate (SVR). This rate is currently 6.29%, so you might end up paying more at this point unless you remortgage to a new deal.
To learn more about visit our page on TRACKER RATE MORTGAGES.
Will my current HSBC mortgage be affected?
Yes, it is not just new customers who will be able to benefit from these new lower rates. If you already have one of the selected residential mortgages that has had its rates reduced, you should see your monthly payments become lower as well.
Generally, your lender should notify you of any changes to your mortgage payments. If you haven’t heard anything and are due to pay your mortgage payment, it could be worth getting in touch with HSBC to be sure.
To check if the lower HSBC mortgage interest rates will apply to your mortgage, you can check with HSBC directly. You could log into online banking to view your mortgage account, contact them via live chat, speak to an advisor in branch or call:
Tel. 0800 169 6333
Should I take out a mortgage with HSBC sooner rather than later?
This decision is ultimately in your hands as everyone’s circumstances are different. If you feel ready to apply for your first mortgage or move home, it could be a good idea to do so now to lock in the new lower rates.
If not, it is possible HSBC mortgage interest rates could remain steady for a while longer but with the consistent rates changes towards the end of 2022 nothing is guaranteed.
If HSBC mortgage rates do rise again, there are other lenders available if you are looking for a new mortgage or remortgage. Our highly skilled mortgage advisors can help you compare deals across the market, to make sure you are choosing the lender offering what you need at the best rates.