HSBC has cut rates by up to 0.15 percentage points on fixed-rate mortgages with a Loan to Value rate (LTV) of 75 per cent or more.
The lender is now offering a 2-year fixed-rate mortgage at 1.34 per cent at 85 per cent LTV, which comes with a £999 fee.
Other highlights include 5-year fixed-rate mortgages at 1.84 per cent at 75 per cent LTV and 1.99 per cent at 80 per cent LTV, both of which come with a £999 fee.
Rate reductions have been made on 15 HSBC products in total.
Tracie Pearce, HSBC UK’s head of mortgages, said: “For those looking to purchase now, these rates offer great value and are particularly beneficial for first time buyers looking for mortgages with higher LTVs.”
Mike Richards, director at London-based Mortgage Concepts Associates, commented: “Those sort of rate cuts at higher loan-to-values are very useful for first-time buyers, people coming out of shared ownership and so on.
“HSBC used to be very competitive and had become a bit uncompetitive, and they are now catching up.”
simon.allin@ft.com
