HSBC is set to roll out significant cuts to a selection of its fixed-rate mortgages. This move, effective from today, is aimed at both new and existing customers on the hunt for a new mortgage deal.

HSBC is not holding back with its latest strategic move, slashing rates across various mortgage offerings. This includes two, three, and five-year fixed-rate mortgages for residential purchases and remortgaging, alongside similar reductions for product transfers. For those looking to invest, there are also cuts to buy-to-let purchase and remortgage deals, as well as international holiday home purchase and remortgage plans.

These new, more competitive rates and deals are set to be available directly from HSBC as well as through brokers, launching on HSBC’s website on 9 April.

What’s On Offer?

Before these cuts, HSBC’s remortgage rates kicked off at 4.71% for a two-year fixed deal and at 4.33% for a five-year fix. These rates were designed for borrowers who had at least 40% equity in their property, translating to a 60% loan-to-value (LTV) ratio, and came with a £999 product fee.

When compared to the current market leaders, HSBC’s new rates are set to challenge the likes of NatWest, which currently offers a two-year fixed-rate remortgage at 4.68% and a five-year fix at 4.24%. It’s worth noting, however, that NatWest’s leading rates are for online-only deals, requiring borrowers to apply and manage their account through the web, with a higher £1,495 fee and the same 60% LTV ratio.

A Ripple Effect of Competitive Pricing

Nick Mendes, a mortgage broker with John Charcol, shares his optimism about the potential market impact of HSBC’s rate reductions, “I expect to see HSBC improve on the minimal cuts we’ve seen from [its] competitors in recent days. NatWest has done well to remain among the best buys for purchase and remortgaging products, for example, but HSBC could topple it when it launches its new rates tomorrow.”