blog mortgage118

Tag: HSBC UK

  • HSBC UK and Others Reduce Mortgage Rates: Impact Analysis

    HSBC UK and Other Lenders Cut Mortgage Rates

    As of 17 April 2026, HSBC UK, Halifax Intermediaries, and BM Solutions are set to reduce their mortgage rates, a move that is likely to stimulate the UK mortgage market. Halifax Intermediaries plans to decrease rates by up to 0.35 percentage points on fixed-rate products. Similarly, TSB has announced a decrease in rates on two-year fixed house purchase mortgages by up to 0.45 percentage points. This comes after the average two-year fixed homeowner mortgage rate dropped to 5.88% on Thursday from 5.89% on Wednesday, according to Moneyfacts. The average five-year fixed homeowner mortgage rate remained unchanged at 5.77%.

    Real-World Impact for First-Time Buyers

    For a first-time buyer securing a two-year fixed-rate mortgage, this rate cut could lead to significant savings. Let’s consider a first-time buyer purchasing a property valued at £300,000 with a 75% loan-to-value (LTV) ratio. This would mean a mortgage amount of £225,000. If the mortgage rate decreases from 5.89% to 5.44% (a reduction of 0.45 percentage points as indicated by TSB), the monthly repayment would decrease from £1,355 to £1,303. This translates to a monthly saving of £52, or £624 per year.

    Impact on Remortgagers

    Remortgagers could also benefit from these rate cuts. Suppose a homeowner with an existing £200,000 mortgage at a 75% LTV ratio decides to remortgage. If their current two-year fixed-rate deal is at 5.89%, their monthly repayments would be £1,204. If they can secure a remortgage at the new lower rate of 5.44%, their monthly repayments would drop to £1,159, a saving of £45 per month or £540 per year.

    Market Context and Outlook

    These rate cuts come at a time when the UK base rate stands at 3.75%. At the start of March, the average two-year fixed-rate mortgage was 4.83%, and the average five-year fixed-rate deal was 4.95%. The current reductions in mortgage rates suggest a positive outlook for borrowers, despite the recent volatility in swap rates and the ongoing geopolitical tensions. The number of mortgage products available in the market has also been improving, with 809 deals returning since 24 March when the total number of available products hit a low of 5,856. However, this is still 973 (12.7%) fewer than before the conflict in Iran began. The recent rate cuts by major lenders such as Santander, Atom Bank, and Skipton Building Society indicate a trend towards lower mortgage rates, which could stimulate further reductions from other lenders in the coming days.

  • HSBC UK and Halifax Intermediaries to Cut Mortgage Rates: What it Means for Homeowners

    HSBC UK and Halifax Intermediaries Announce Mortgage Rate Cuts

    As of 17 April 2026, HSBC UK and Halifax Intermediaries have announced plans to reduce their mortgage rates. This encouraging move comes as a result of falling swap rates, which play a significant role in the pricing of mortgages. Halifax Intermediaries plans to decrease rates by up to 0.35 percentage points on fixed-rate products. TSB also announced a decrease in rates on two-year fixed house purchase mortgages by up to 0.45 percentage points. As of Thursday, the average two-year fixed homeowner mortgage rate was 5.88%, down from 5.89% on Wednesday. The average five-year fixed homeowner mortgage rate remained unchanged at 5.77%.

    Real-World Impact for First-Time Buyers

    To understand the impact of these rate reductions, let’s consider the case of a first-time buyer. For instance, a first-time buyer with a £250,000 repayment mortgage at 75% LTV (Loan to Value) could see their monthly payments decrease. If the mortgage rate drops from 5.88% to 5.43% (a decrease of 0.45 percentage points as announced by TSB), their monthly payments would reduce from £1,499 to £1,441. This results in a saving of £58 per month or £696 per year.

    Implications for the Remortgage Market

    Remortgagers could also benefit from these rate cuts. For instance, a homeowner with a £200,000 repayment mortgage at 60% LTV looking to remortgage could see their monthly payments drop. If the mortgage rate decreases from 5.77% to 5.42% (a decrease of 0.35 percentage points as indicated by Halifax Intermediaries), their monthly payments would reduce from £1,186 to £1,151. This equates to a saving of £35 per month or £420 per year.

    Market Context and Future Outlook

    In March, the average two-year fixed-rate mortgage was 4.83% and the average five-year fixed-rate deal was 4.95%. The current base rate is 3.75%. The number of homeowner mortgage products available on Thursday was 6,665, an increase of 809 from the low of 5,856 available products on 24 March. This is, however, still 973 (12.7%) fewer than before the conflict in Iran began. Money markets are now pricing for fewer base rate hikes than they were a few weeks ago and swap rates have fallen back towards 4% from highs of around 4.4%. This has allowed several lenders, such as Santander, Atom Bank and Skipton Building Society, to make meaningful cuts over the last few days. With HSBC’s plans to cut mortgage rates, it adds to the sense that this could help kick-start further reductions from other big names over the coming days.