HSBC has cut mortgage rates and is making its energy-efficient cashback home mortgage available to more customers.
The mortgage provider today reduced the interest on its two-year fixed-rate mortgages by up to 0.16% and five-year mortgages by up to 0.15%. The lowest five-year deal is now 4.09% and is available to Premier customers.
Meanwhile, existing customers switching to another HSBC deal will benefit from a discount of up to 0.47% buy to rent The remortgage interest rate will also be reduced by a maximum of 0.23%.
Oli O’Donoghue, head of mortgages at HSBC UK, added: “The start of a new year often brings resolutions to spend less, save more or move at the higher end of the financial decision-making scale.
“We are strongly focused on helping customers onto or beyond the property ladder, whatever time of year, and we aim to provide some of the best mortgage options available to help our customers achieve their goals in the field of home ownership.
“While mortgage rates have been volatile in 2024 and move up and down regularly, these rate cuts so early in 2025 will be a welcome step for those with New Year’s resolutions.”
HSBC is also making changes to its Energy Efficient Homes Cashback Mortgage (EEHC). The deal, which was launched in March last year, offers cashback to customers whose home has an Energy Performance Certificate (EPC) rating of A or B.
This deal was previously only available through brokers, but is now open to customers who apply directly to HSBC.
Since the launch of the deal, the amount of cashback HSBC is offering on EEHC mortgages has increased from £500 to £750 or £1,250, depending on the mortgage taken out. The lender said this meant that a customer taking out a mortgage with other cashback elements could now receive a total of up to £1,750 in cashback.
These reductions come just days later Leeds Building Society introduced price reductions to help customers reduce repayments in the new year.
Nicholas Mendes, mortgage technical manager at John Charcol mortgage brokers, said HSBC’s price cuts would be a welcome addition to the market.
“Following the festive period,” he said, “this change comes at a crucial time, with many potential movers refocusing on plans for the year ahead and first-time buyers looking to move quickly in the run-up to the upcoming festive season. changes in stamp duty.”
He added: “These reductions, which cover fixed terms from two to ten years and LTVs of up to 95%, reflect HSBC’s efforts to remain competitive and reach a wide range of customers. Buy-to-Let investors and international customers are also included, broadening the appeal.”