HSBC is set to revise its mortgage rates starting tomorrow, affecting various product lines.
- The adjustments will impact both residential and buy-to-let mortgages across several options.
- Existing customers, first-time buyers, and those with energy-efficient homes will be affected.
- Fixed-rate options for different loan-to-value brackets will see changes, including high-value and remortgage products.
- International clients and additional borrowing options are also subject to revised rate increases.
Effective from 13th November, HSBC will implement new rates for residential and buy-to-let mortgages, affecting a wide array of its product offerings. These changes will influence customers from various sectors, including existing borrowers, first-time buyers, and those owning energy-efficient homes. The adjustments encompass different fixed-term products, demonstrating HSBC’s strategic approach to the current market environment.
For existing residential customers wishing to switch rates, HSBC will increase rates on fixed-rate mortgages ranging from 2 to 10 years. The adjustments cover various loan-to-value thresholds, which include 60%, 70%, 75%, 80%, 85%, 90%, and in certain instances, 95% LTV. Additionally, the lender’s exclusive Premier 5-year fixed rate will see augmentations for LTV levels of 60% through 90%.
These increases extend to those interested in borrowing additional funds, affecting 2-, 3-, 5-, and 10-year fixed-rate products at similar LTV brackets. First-time buyers and home movers, who are keen on 2- and 5-year fixed options, will notice revised rates impacting both Fee Saver and Standard products. Such hikes are particularly targeted within the LTV levels of 60% to 95%.
Customers with high-value mortgages will encounter these changes too, with rates affected at LTVs of 60%, 70%, and 75%. For energy-efficient property mortgages, specifically for A and B Energy Performance Certificate (EPC) rated homes, rate alterations are applicable for both 2- and 5-year fixed Fee Saver and Standard products across various LTV bands.
Those exploring remortgage options should also prepare for adjustments. HSBC has escalated rates on 2- and 5-year fixed Fee Saver, Standard, and high-value mortgage products for LTVs ranging from 60% to 90%. Notably, remortgage products with cashback incentives will face rate hikes on both standard and Fee Saver options within these LTV brackets.
Adjustments to HSBC’s buy-to-let mortgage products will also take place. Existing customers aiming to switch rates or borrow more will find rate increases on 2- and 5-year fixed-rate products within both Standard and Fee Saver categories, especially for LTVs of 60%, 65%, and 75%.
New buy-to-let purchase products are similarly affected, as rates for 5-year fixed Fee Saver and Standard options, inclusive of Standard products with fixed fees of £1,999 and £3,999, are set to rise. Remortgage products for buy-to-let customers won’t be spared, with similar rate adjustments anticipated.
International clients holding residential mortgages with HSBC will experience rate hikes across various fixed-term products, specifically for LTV levels of 60%, 70%, and 75%. These changes are mirrored in international buy-to-let products, particularly affecting 2- and 5-year fixed Fee Saver and Standard rates for specific LTV ranges.
HSBC has advised that applications must be submitted before these changes take effect, with supporting documents provided within 30 days. This proactive measure allows customers to secure existing rates, reflecting HSBC’s response to shifting market dynamics. Insights from Nicholas Mendes highlight the broader context, noting similar trends from other lenders and rising swap rates impacting fixed-rate pricing.
Overall, HSBC’s rate revisions underscore the evolving landscape for mortgage and buy-to-let products amid changing market pressures.
