"While we are seeing green shoots in the parks and in our gardens, we are also seeing signs of green shoots in the housing market."
HSBC UK has reduced rates across 37 products in its residential mortgage range by up to 0.15%.
Highlights include a three-year fixed rate at 1.34% up to 60% LTV, which is currently the lowest available on the market. HSBC has also cut its three-year fix at 90% LTV by 0.15% to 2.14%.
A two-year fixed rate at 90% LTV has been reduced to 1.99% fee-free and 1.74% with a £999 fee, the lowest these rates have been since 2018.
Five-year fixed rates now start at 1.69% up to 60% LTV and 2.24% at 90% LTV, both with no fee.
Michelle Andrews, HSBC UK’s head of buying a home, said: “While we are seeing green shoots in the parks and in our gardens, we are also seeing signs of green shoots in the housing market. Recent Bank of England data has shown mortgage approvals being at their highest level for a couple of years and a RICS report showing sales expectations are positive, both show the housing market is moving.
“We are continually looking at ways to provide great value and service to our customers. Whether that is chipping away at our ‘time to offer’ a mortgage by making our processes slicker - reducing it significantly over the last two years to 10 days on average across all of our channels today, increasing the reach of our mortgages by making them available through more brokers, or making borrowing cheaper when we can, we are proud to be supporting the housing market and helping those green shoots thrive.”
Rachel Springall, finance expert at Moneyfacts, added: “HSBC has made several changes to its mortgage range this week, seeing its three-year fixed rate deal reduced by 0.10%. Now priced at 1.34%, this deal leads its sector as the lowest rate available and includes an attractive incentive package of free valuation for all applicants and free legal fees for those remortgaging. Borrowers searching for a low rate and a competitive incentive package may find this an enticing option. As a result, the deal earns a Moneyfacts product rating of Outstanding.”