HSBC has detailed that its loans to homemovers, first-time buyers and remortgagers will be cut by up to 35 basis points, across its loan-to-value range.
The high street bank adds it has reintroduced cashback deals of up to £500 on several products.
Examples of its new prices include a five-year fixed-rate remortgage, with a £999 fee, at 60% LTV now at 5.49%, reduced by 15bps.
A two-year fixed-rate homemover and FTB option, with a £999 fee, at 60% LTV, now at 5.94%, down by 20bps. This comes with £250 cashback.
And a five-year fixed-rate FTB loan, with no fee, at 85% LTV, now at 5.64%, cut by 20bps. This comes with £500 cashback.
The move follows the Bank of England’s base rate rise by 25bps to 5.25% last week, its 14th consecutive rise and the highest level for 15 years.
The central bank is battling inflation, which dropped to 7.9% in the year to June from 8.7%, but still remain almost four times higher than its 2% target.
However, lenders say swap rates have fallen from their early July peak, allowing them to cut rates. Nationwide and TSB are among other major lenders to cut rates this week.
An HSBC spokesman says: “Following a review, we are pleased to announce cuts to mortgage rates across our residential mortgage range in addition to reintroducing a cashback incentive of £500 on a number of deals.
“Rates have been cut on our residential mortgage range by 20bps on average –between 5bps and 35bps.
“On top of this, our remortgage two- and five-year deals are available with free legal fees, or £300 cashback.”
HSBC has signalled to the market yesterday that it would cut home loan rates, before revealing them today.
