HSBC has cut interest rates on its mortgage offering by up to 34 basis points.
The lender informed brokers yesterday that it would reduce interest rates, but did not reveal by how much.
Today’s changes apply to products for starters, movers and people who are refinancing.
Within the home buying range, a two-year fixed LTV of 60% with a £999 fee has fallen by 29 basis points to 4.80%, while the no-fee equivalent at the same LTV has fallen by 26 basis points to 5.02%.
A five-year fixed rate at 90% LTV with no fees and £350 cashback has been reduced by 31 basis points to 5.28%, while a premium two-year fixed rate at 60% LTV with a £999 fee has fallen by 29 basis points to 4.77%.
For first-time buyers, a two-year fixed LTV of 60% with a £999 fee and £750 cashback has fallen by 24 basis points to 4.93%, while a two-year fixed LTV of 90% with no fees and £500 cashback has been reduced by 25 basis points to 5.49%.
A five-year fixed LTV of 85% with no fees and £500 cashback is down 28 basis points to 5.21%, while a premium two-year fixed LTV of 60% with a £999 fee and £750 cashback is down 24 basis points to 4.9%.
Within the remortgage range, a two-year fixed rate at 60% LTV with a £999 fee has fallen by 28 basis points to 4.90%, while a no-fee two-year fixed rate at 75% LTV has fallen by 29 basis points to 5.30%.
A five-year fixed LTV of 60% without fees has fallen by 33 basis points to 4.96%, while the equivalent of a 75% LTV has also fallen by 33 basis points to 5.03%.
Within the remortgage range for refinancing five-year loans, a five-year no-fee LTV has fallen 34 basis points to 5%, while the equivalent 75% LTV has also fallen 34 basis points to 5.22%.
Commenting yesterday, when HSBC first flagged the move, Nicholas Mendes, technical mortgage manager at John Charcol, said: “It’s another positive step, and probably the clearest sign yet that lender confidence is starting to return.
“What gives this move some weight is that HSBC is one of the largest lenders.
“When a lender of that size starts repricing, it tends to give the broader market a boost and adds to the feeling that this could help trigger further cuts from other big names in the coming days.
“That’s especially encouraging after the volatility of recent weeks, which has seen lenders focus much more on protecting margins and managing risk than on tough price competition.
“It is also a broader move, covering areas such as first-time buyers, relocations, mortgage refinancing and buy to let, making it more meaningful than a small, isolated adjustment to one corner of the range.”