HSBC has become the latest high street lender to slash its mortgage rates for remortgaging homeowners.
A five-year fixed rate deal with the bank has been cut to 3.94% for borrowers with 40% equity.
Meanwhile, the lender is also unveiling a two-year fixed rate remortgage at 4.49% for borrowers with at least 40% equity. This, according to broker L&C Mortgages, is the first time two-year fixed rates have dipped below the 4.50% threshold since early June last year.
HSBC has also released a ten-year fixed rate starting from as little as 3.99%. All these rates become effective from tomorrow (Thursday 4 January)
David Hollingworth, associate director at L&C Mortgages said: “These cuts are just the latest salvo in an increasingly fast-moving market.”
He added: “Although borrowers coming to the end of their current fixed rate this year will still be looking at a rise in payments, these new lower rates will at least take some of the sting out of the inevitable rise.”
So far most of the rate cuts have been focussed on homebuyers, so the fact HSBC is offering these rates for remortgagers has been welcomed by mortgage experts.
Hollingworth said: “With large numbers of borrowers anxiously approaching the expiry of a fix taken during the ultra-low rate period, this is a welcome move and hopefully a signal for more lenders to follow suit, improving options for those facing payment shock.”
HSBC’s cuts come just a day after Halifax announced price cuts and Leeds Building Society unveiled improved pricing, including some strong deals for first-time buyers.
“We thought the New Year would start with a bang and that’s proving to be the case,” Hollingworth added.
