{"id":80810,"date":"2024-06-25T12:26:38","date_gmt":"2024-06-25T12:26:38","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/25\/hsbc-latest-big-bank-to-cut-mortgage-rates\/"},"modified":"2024-06-25T12:26:38","modified_gmt":"2024-06-25T12:26:38","slug":"hsbc-latest-big-bank-to-cut-mortgage-rates","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/25\/hsbc-latest-big-bank-to-cut-mortgage-rates\/","title":{"rendered":"HSBC latest big bank to cut mortgage rates"},"content":{"rendered":"
\"HSBC<\/div>


\n<\/p>\n

\n

HSBC has joined two other major lenders in reducing mortgage rates following hints of a summer base rate cut by the Bank of England.<\/p>\n

Barclays cut the cost of its fixed-rate home loans for new deals on Tuesday, following an earlier move by NatWest.<\/p>\n

HSBC’s cuts will come into effect on Wednesday, with brokers expecting more mortgage companies to follow suit. <\/p>\n

However, these reductions are small in the wider context. Borrowers still face relatively high costs, with many paying significantly more in monthly repayments when current cheaper deals expire. <\/p>\n<\/div>\n

\n

Average mortgage rates had been creeping up, driven by a lack of fresh competition between lenders during the election campaign.<\/p>\n

The average rate on a two-year fixed deal stands at 5.96% according to the financial information service Moneyfacts. It said the average five-year deal had a rate of 5.53%.<\/p>\n

“These moves [by HSBC and others] suggest that the recent edging up in rates is now unwinding and most cuts are being made in small steps,” said David Hollingworth, from broker L&C.<\/p>\n

The interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Doing nothing would leave people on a variable rate, which can be very expensive.<\/p>\n

About 1.6 million existing borrowers have relatively cheap fixed-rate deals expiring this year.<\/p>\n<\/div>\n

\n

Although spring tends to bring more activity in the housing market, this may have been dampened as potential buyers wait for more political certainty.<\/p>\n

Borrowers will also be watching for whether the Bank of England’s Monetary Policy Committee (MPC), which sets interest rates, opts for a cut at its next meeting on 1 August.<\/p>\n

At the most recent meeting last week, there was a significant change in tone<\/a> indicating a majority could vote for one.<\/p>\n

Optimism about such an outcome may have led to the latest moves by major lenders. The banks may also be jostling for custom.<\/p>\n

Andrew Montlake, from mortgage broker Coreco, said: \u201cLenders will be keen to kickstart a market lethargic from the election, hot weather and football.<\/p>\n

\u201cThe country desperately needs the boost of a cut to relieve some of the financial pressures that have held back the economy and put borrowers under immense pressure.”<\/p>\n

However, he said positive news about falling inflation may only be temporary, and could lead to more caution from the Bank.<\/p>\n

Michelle Lawson, from Lawson Financial, said borrowers were “beleaguered” but more lenders could cut rates in the coming days.<\/p>\n

Separate figures published on Tuesday by UK Finance, which represents lenders, showed a further drop in the number of people paying only the interest on their home loan, despite the tough current conditions for borrowers.<\/p>\n<\/div>\n


\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

HSBC has joined two other major lenders in reducing mortgage rates following hints of a summer base rate cut by the Bank of England. Barclays cut the cost of its fixed-rate home loans for new deals on Tuesday, following an earlier move by NatWest. HSBC’s cuts will come into effect on Wednesday, with brokers expecting […]<\/p>\n","protected":false},"author":2,"featured_media":80811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/ichef.bbci.co.uk\/news\/1024\/branded_news\/6659\/live\/b488d900-32ed-11ef-bfb1-5f1679f1f07f.png","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[673,995,3177,15954,305,5144,6829],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/80810"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=80810"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/80810\/revisions"}],"predecessor-version":[{"id":80812,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/80810\/revisions\/80812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/80811"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=80810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=80810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=80810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}