HSBC has cut mortgage rates and is making its energy efficient home cashback mortgage available to more customers.
The mortgage lender has today reduced rates on its two-year fixed-rate mortgages by up to 0.16% and its five-year fixes have been slashed by up to 0.15%. The lowest five-year deal is now 4.09%, and is available for Premier customers.
Meanwhile, existing customers who switch to another HSBC deal will benefit from reduction of up to 0.47% and buy-to-let remortgage rates are also being cut by up to 0.23%.
Oli O’Donoghue, HSBC UK’s head of mortgages, added: “The start of a new year often brings resolutions of spending less, saving more, or moving house at the upper end of the financial decisions scale.
“We are firmly focused on helping customers onto or up the property ladder, whatever the time of year, and we are committed to providing some of the best mortgage options available to help our customers achieve their home ownership goals.
“While mortgage rates have been in flux during 2024, moving up and down regularly, these rate cuts so early in 2025 will be a welcome move to those with home ownership new year resolutions.”
HSBC is also making changes to its Energy Efficient Homes Cashback mortgage (EEHC). The deal, launched in March last year, provides cashback to customers whose homes have an Energy Performance Certificate (EPC) rating of A or B.
This deal was previously only available through brokers, but it will now be accessible to customers applying to HSBC directly.
Since launching the deal, the amount of cashback HSBC offered on EEHC mortgages has increased from up to £500 to £750 or £1,250 depending on the mortgage being taken. The lender said this meant a customer taking out a mortgage with other cashback elements could now receive up to £1,750 in cashback in total.
These reductions come just days after Leeds Building Society made price cuts 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, as many potential home movers start re-engaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.”
He added: “These reductions, covering fixed terms from two to 10 years and LTVs of up to 95%, reflect HSBC’s efforts to remain competitive and capturing a diverse range of customers. Buy-to-Let investors and international clients are also included, widening the appeal.”
