HSBC has announced impending rate increases across its residential and buy-to-let mortgage lines.
- These adjustments affect a wide range of customers, including those seeking to switch rates or increase borrowing.
- First-time buyers and home movers will see rate hikes on specific fixed-rate mortgages.
- Buy-to-let products are also subject to rate changes, impacting both domestic and international customers.
- HSBC advises swift action to secure current rates before changes take effect.
HSBC has announced changes to mortgage rates effective from tomorrow, impacting both residential and buy-to-let product lines. The adjustments apply to a variety of customers, whether they are switching rates or seeking to borrow additional funds. Existing residential customers will find increased rates on fixed-rate mortgage products, with terms ranging from 2 to 10 years and loan-to-value (LTV) ratios from 60% to 95%. This includes both Fee Saver and Standard options.
First-time buyers and home movers are also included in this rate change. They will experience hikes on 2- and 5-year fixed options in both Fee Saver and Standard categories, affecting LTV levels between 60% and 95%. High-value mortgages within these ranges, including those for energy-efficient homes, will similarly see rate increases.
For those interested in remortgaging, the changes are extensive. Residential remortgage customers will see increased rates affecting 2- and 5-year fixed options, covering both Fee Saver and Standard products from 60% to 90% LTV. Those opting for mortgages on energy-efficient properties or products with cashback will also encounter similar increases.
HSBC’s buy-to-let products aren’t spared either. Changes will affect 2- and 5-year fixed rates, with both Standard and Fee Saver options for LTVs of 60%, 65%, and 75%. The modifications also extend to new buy-to-let purchase products, and similar rate adjustments will apply to buy-to-let remortgage offerings.
In addition, international customers with residential and buy-to-let mortgage products will see rate increases across selected fixed-rate options. As advised by HSBC, customers should submit complete applications by midnight to lock in existing rates before the new adjustments are implemented. Supporting documentation must be provided within 30 days, and the systems will be updated to reflect these new rates.
Nicholas Mendes, a mortgage technical manager, commented on the changes stating that this is the second rate increase HSBC has made recently, following a similar move by Santander. He suggested that the increase in applications and rising swap rates have necessitated these changes, highlighting the challenging landscape borrowers currently face.
HSBC’s latest rate adjustments underscore the changing dynamics in the mortgage market, urging borrowers to act swiftly.
