HSBC has announced a series of rate changes across its mortgages after the Halifax and the Leeds building societies introduced reductions.
The high street giant is reducing interest rates on fixed rate deals running for two, five and 10 years.
The scale of the reductions, which will come into effect from Monday, have not yet been revealed. However, it is likely they will be swiftly followed by cuts from rivals.
Earlier this week, the Halifax made interest rate cuts of up to 35 basis points, while Leeds Building Society said it will reduce its rates by up to 21bps.
John Charcol mortgage technical manager, Nicholas Mendes, 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.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said: “While many New Year fireworks displays were cancelled due to the weather, HSBC is determined to start the year with a bang.
“The good news for borrowers is this should see increased competition and further rate cuts over the coming weeks. Other lenders will almost certainly follow suit.”
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, told Newspage: “HSBC clearly mean business and that’s good news for borrowers as the New Year begins in earnest.
“December was an exceptionally busy month and that looks set to continue into January as lenders battle for market share. Borrowers look set to benefit.”
Justin Moy, Managing Director at EHF Mortgages, commented: “Though we won’t know the exact rates until Monday, seeing such a comprehensive list of rate cuts can only be good news for borrowers and buyers, and will leave other lenders no alternative but to follow.
“January is a key month for lenders to grab business, and HSBC has shown its hand early on in the month.”
Ranald Mitchell, Director at Charwin Mortgages, said the reductions point to a highly competitive mortgage market in the New Year.
“The downward trend is clear and presents an early opportunity for borrowers to secure favourable deals,” he said.
Riz Malik, Independent Financial Adviser at R3 Wealth, issued a note of caution, saying: “Don’t expect massive cuts, and be wary that lenders may pull market-leading rates at short notice.”
