HSBC Lowers Residential and Buy-to-Let Mortgage Rates: What UK Borrowers Need to Know

HSBC Announces Widespread Mortgage Rate Reductions

HSBC, one of the UK’s leading mortgage lenders, has announced sweeping reductions to a wide range of residential and buy-to-let (BTL) mortgage rates, effective from Tuesday, 26th August.

The new lower rates apply across products aimed at first-time buyers, home movers, remortgagers, buy-to-let landlords, and even energy efficient homes. This move could provide significant savings for UK borrowers, making now an opportune time to secure a competitive fixed-rate mortgage.

Key Mortgage Rate Changes: Residential & Buy-to-Let

• First Time Buyer / Home Mover Mortgages:
  • 2 Year Fixed Fee Saver and Standard at 60%, 70%, 75% LTV – rates reduced
  • 5 Year Fixed Fee Saver and Standard at 60%, 70%, 75% LTV – rates reduced
  • High Value & Premier Exclusive Fixed Rates at 60%, 70%, 75% LTV – rates reduced
  • Energy Efficient Range (A & B EPC): Fixed at 60%, 70%, 75% LTV – rates reduced
• Remortgage Products:
  • 2 & 5 Year Fixed Fee Saver and Standard at 60%, 70%, 75% LTV – rates reduced
  • Premier Exclusive and High Value Mortgages at up to 75% LTV – rates reduced
  • Remortgage Cashback and Energy Efficient Home Ranges also see rate reductions
• Buy-to-Let Mortgages:
  • 5 Year Fixed Fee Saver and Premier Exclusive at 60% LTV (Switching / Borrowing More) – rates reduced
  • BTL Remortgage: 2 & 5 Year Fixed Fee Saver and Premier Exclusive Fee Saver at 60% LTV – rates reduced
  • BTL Energy Efficient Range: 2 & 5 Year Fixed Fee Saver at 60% LTV – rates reduced
• International Residential & BTL Mortgages:
  • 2 & 5 Year Fixed options at up to 75% LTV – rates reduced

Who Benefits Most from These Changes?

• First-Time Buyers and Home Movers: Reduced rates on fee-saver and standard products lower upfront and ongoing costs, making homeownership more affordable.
• Remortgagers: Both standard and cashback options see lower rates, potentially reducing monthly repayments significantly for those switching deals.
• Buy-to-Let Landlords: More competitive rates for those remortgaging or borrowing more against existing portfolios, including energy-efficient properties.
• Borrowers Seeking Green Mortgages: Special rate reductions on homes with high energy efficiency (A & B EPC ratings) align with lower running costs and may unlock additional savings.
• Existing HSBC Premier Account Holders: Exclusive lower ‘Premier’ rates are available, potentially offering superior value—account must be opened before application submission.

Unique Features & Special Promotions

• Fee Saver Options: These products feature reduced or zero product fees, especially attractive for buyers looking to minimise upfront costs.
• Cashback on Remortgage: Cashback offers can further offset costs for those switching mortgages for a better deal.
• Energy Efficient Mortgage Range: Additional discounts for borrowers purchasing or remortgaging A or B EPC-rated properties.
• Premier Exclusives: Preferential rates are reserved for HSBC Premier customers. If you open an account before submission or update an existing application, you may be eligible for these rates. Check with your adviser for eligibility and process.

Why Consider HSBC for Your Next Mortgage?

• Wide Choice of Products: Extensive fixed-rate choices tailored for home buyers, movers, remortgagers, investors, and green-minded borrowers.
• Consistent Rate Competitiveness: HSBC is known for offering some of the best mortgage and remortgage rates in the UK, now further improved.
• Specialist and High-Value Lending: Flexible criteria for high net worth clients and specialist scenarios.
• Sustainability-Driven Options: Emphasis on energy efficiency and eco-home finance, supporting long-term savings.

Next Steps: Secure the New Lower Rates

To take advantage of these newly reduced HSBC mortgage rates, it’s important to act quickly. Applications for the previous rates must be submitted in full by midnight on Monday, 25th August. After this, new rates take effect and sourcing systems and product finders are updated from Tuesday, 26th August. Ensure all documentation is provided within 30 days of application submission. If you wish to qualify for ‘Premier’ exclusives, confirm or open an HSBC Premier current account prior to applying.

Need tailored advice? Contact our expert mortgage advisors today to discuss your needs and secure a deal that fits your circumstances best.

Frequently Asked Questions (FAQs)

1. Who is eligible for the new HSBC mortgage rates?
   New and existing residential buyers, remortgagers, buy-to-let landlords, and those purchasing energy-efficient homes (A/B EPC). Premier exclusives require an HSBC Premier account.
2. How much could I save with the reduced rates?
   The exact savings depend on mortgage size, product type, and loan-to-value. Typically, a rate cut directly reduces monthly repayments and total interest paid.
3. What is the benefit of a Fee Saver mortgage?
   Fee Saver products minimise or eliminate upfront arrangement fees, lowering the initial cost of taking out a mortgage.
4. How do I apply or check if I’m eligible?
   Speak to an independent mortgage advisor or contact our team. We’ll evaluate your circumstances, discuss HSBC’s criteria, and help with the application process.
5. Can I access Premier rates if I open a new Premier account?
   Yes, but the account must be live before application. You can submit an amendment form or request a rate change after opening through HSBC’s customer service.