HSBC has slashed its tracker mortgage rates to reflect the Bank of England’s recent decision to cut the base rate. Other lenders are following suit, offering cheaper deals to homeowners and those looking to buy.
Last week, the Bank of England lowered the base rate by 0.25% to 5%. This was the first reduction since 2020, and experts predicted it would lead to lower rates on standard variable rate (SVR) and tracker mortgages.
HSBC wasted no time in passing on the rate cut to its customers. The bank confirmed that all its tracker mortgages would be reduced, effective from 2nd August. However, HSBC’s standard variable rates for both residential and buy-to-let mortgages will remain unchanged for now.
Other lenders have also announced rate cuts for both SVR and tracker mortgages. These include:
- Santander
- Virgin Money
- Clydesdale Bank
- Coventry Building Society
- Penrith Building Society
TSB Slashes Mortgage Rates Up To 0.2%
TSB has gone even further, cutting rates across a range of mortgage products. Borrowers looking for residential, buy-to-let, product transfers, and additional borrowing could all benefit from these cuts. Here are the key takeaways:
Residential Mortgages:
- First-time buyers and home movers: Two, three, and five-year fixed-rate deals up to 80% loan-to-value will see cuts of up to 0.2%. Rates now start from 4.49%.
- Remortgaging: Two-year fixed-rate deals up to 75% LTV have been reduced by 0.05%, with rates starting from 4.69%.
Buy-to-Let Mortgages:
- New Purchases and Remortgages: Two and five-year fixed rates have been slashed by up to 0.3%. Two-year fixes now start from 4.59%, while five-year fixes are available from 4.39%.
- Product Transfers: Two and five-year fixed rates for existing buy-to-let customers have been reduced by 0.2%, with rates starting from 4.69% and 4.34% respectively.
- Additional Borrowing: Two and five-year fixed rates have fallen by up to 0.2%, starting from 4.99% and 4.49% respectively.
Furthermore, TSB has made it easier for buy-to-let landlords by:
- Reducing its buy-to-let stress rate by up to 1%.
- Lowering the stress rate for background buy-to-let mortgages from 6% to 5.5% for those applying for residential mortgages.
This raft of rate cuts comes as welcome news for homeowners and potential buyers, especially as the cost of living continues to bite.