HSBC has cut mortgage rates across all ranges, with some deals now starting from 3.84 percent.
The reduction applies to both two- and five-year fixed repayment mortgages, with rates dropping by up to 0.16 percent for residential mortgages aimed at first-time buyers and home movers.
Meanwhile, Buy-to-Let mortgage borrowers can enjoy rate cuts of up to 0.35 percent.
A HSBC UK spokesperson said: “We’re frequently reviewing our mortgage rates and aim to remain as competitive in the market as possible. We’re really pleased we can offer even more customers rates that have dipped below four percent – some of our lowest rates since the start of the year.
“Our lowest product is still our 60 percent LTV five-year residential mortgage, which is offered at 3.84 percent, but we’re pleased to also now be offering 3.99 percent on our 70 percent and 75 percent LTV five-year residential mortgage ranges.
“We’ve also made further reductions in the higher LTV ranges offering 4.29 percent on our 80 percent LTV five-year residential mortgage, to further support those customers with smaller deposits and helping to make homeownership more accessible across a broader range of lending tiers.”
The spokesperson added: “Our priority is to empower our customers with the financial tools they need to achieve their dreams. We’re committed to providing competitive rates, ensuring that our customers can secure the homes they want with even greater affordability.”
The new deals follow hot on the heels of more rate reduction announcements from NatWest and Barclays, with selected rates slashed by as much as 0.2 percent from today.
Stephen Perkins, managing director at Yellow Brick Mortgages commented: “It’s back to school and this is the rate equivalent of a pile-on. First, we had NatWest, then Barclays and now HSBC all cutting rates as the rate war marches on. This is the real deal.”
Iain Swatton, director at Exemplar Financial Services said: “Today’s flurry of rate reductions is a very positive sign, with lenders actively pricing to encourage buyers to take the plunge.
“This is great news for remortgage clients coming off low rates, as it helps soften the blow. It seems the winds of optimism are starting to blow through the market. All in all, this is a great start to September for borrowers.”
Craig Fish, director at Lodestone Mortgages & Protection said: “There are good reductions from several lenders already this morning, and more lenders are likely to follow. As the nights grow darker, this is a bright sign that the UK property market is about to make a resurgence in time for the Autumn.”
Rohit Kohli, director at The Mortgage Stop added: “The mood among lenders is clearly that these levels of rates are here to stay for a while longer and, as long as there are no shocks with inflation next week, then borrowers should act quickly. These ongoing cuts are quickly turning things into a sellers’ market and prices could start to edge up quickly.”
