HSBC has launched its latest round of rate cuts across its residential and landlord home loan range by as much as 30 basis points.
The high-street bank says it has reduced rates on its residential mortgage range by 10bps on average, and between 3bps and 30bps, overall. Cuts to its buy-to-let products are as much as 19bps.
Highlights among its reductions include:
Purchase
- Two-year fix, with a £999 fee, at 60% loan to value, at 5.89%, reduced by 5bps, with £250 cashback
- Five-year fix, with no fee, at 90% LTV at 5.79%, reduced by 15bps, with £500 cashback available for first-time buyers
Remortgage
- Five-year fix, with a £999 fee, at 60% LTV at 5.44%, reduced by 5bps
- 10-year fix, with a £999 fee, at 60% LTV at 5.14%, reduced by 30bps
BTL purchase
- Two-year fix, with no fee, at 60% LTV at 6.44%, reduced by 19bps
BTL remortgage
- Five-year fix, with no fee, at 75% LTV at 5.89% reduced by 10bps
The move comes as lenders make several rounds of rate cuts following the Bank of England’s base rate rise by 25bps to 5.25% earlier this month, its 14th consecutive rise taking it to the highest level for 15 years.
The central bank is battling inflation, which dropped to 6.8% in the year to July from 7.9% in June, but still remains almost three-and-a-half times higher than its 2% target.
However, lenders say swap rates have fallen from their early July peak, allowing many of them to cut rates.
Halifax, Nationwide, TSB and NatWest are among other major lenders to have cut their fixed-rate home loans over the last three weeks. HSBC last cut its rates at the start of this month.
