HSBC and NatWest cut mortgage rates as competitors could follow
In news that will relieve many HSBC and NatWest have announced a fresh round of mortgage rate cuts.
Currently, the average two-year fixed mortgage rate currently sits at 6.69%, while a five-year fixed deal is around 6.18%, according to the latest Moneyfacts data.
HSBC and NatWest mortgage rates
Now HSBC have revealed that it it will cut its mortgage rates from Tuesday, 5 September, across a range of its most popular products.
Here are some examples:
First Time Buyer 2-year fixed rate with no fee at 85% loan to value, now at 6.34%, reduced by 0.20%, and also comes with £250 cashback;
Re-mortgage: Five-year fixed rate with £999 fee at 60% loan to value now at 5.34%, reduced by 0.10%. This is available with free legals or £300 cashback;
Home buyer: two-year and First Time Buyer with £999 fee at 60% loan to value, now at 5.79%, reduced by 0.10%, and also comes with £250 cashback;
Existing Customers Switching: Five-year fixed rate with £999 fee at 60% loan to value at 5.16%, reduced by 0.03%.
“We’re firmly focused on supporting customers in the current environment,” an HSBC spokesperson said.
“Rates have been cut on our residential mortgage range by 0.10% on average, between 0.02% and 0.20%.”
Also, NatWest followed with cuts of its own of up to 0.35 percentage points for fixed-rate loans and 0.55 percentage points for trackers.
More to follow?
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, said more cuts from the other four members of the “big six” – Lloyds Banking Group, Nationwide, Santander and Barclays.“With NatWest following hot on the heels of HSBC in announcing new rate reductions, there’s every chance we could see the remaining big four come to the party this week too,” he said.
Pay mortgage off by 65
It comes as a third of those with a mortgage do not think they will pay it off by the time they are 65, reported The Guardian on Saturday 2nd September.
In response, HSBC increased its maximum term from 35 to 40 years, saying that by doing this, “we aim to help make mortgages more manageable, with lower monthly repayments, and home ownership a reality for our customers”.
You can read about if you should take your mortgage over a longer term HERE