HSBC cuts five-year fixed rate
HSBC is now offering a highly competitive five-year fixed-rate for home purchases in Sussex at 4.59%. This offer, accessible through Gareth, includes a five-year fixed rate for remortgage at 4.84%. Both deals, whether for purchase or remortgage, cater to borrowers with a 40% equity or deposit (60% loan to value) and are accompanied by a £999 fee.
In comparison with other market players, yesterday Halifax Intermediaries took the lead by reducing rates to an impressive 4.53% for a market-leading five-year fixed-rate for purchases. Virgin Money has also joined the fray by slashing rates and now boasts the lowest five-year fix for remortgages at 4.7%.
For Sussex residents in pursuit of a mortgage, this signals a positive trend as Gareth anticipates a heightened mortgage price war in the remaining weeks of the year. The recent drop in inflation, as reported by the Office for National Statistics, is expected to be a catalyst for this increased competition.
The decline in inflation makes it less likely for the Bank of England to raise the Bank Rate (currently at 5.25%), presenting an opportunity for lenders to offer more competitive rates. Sussex residents stand to benefit from this scenario, with lower rates potentially shaking up the mortgage market in the lead-up to the New Year.
Observing this morning’s news, Gareth noted, “Today’s favourable inflation data has lenders reviewing their current rates, and we have already witnessed a decline in fixed mortgage rates from some. Over the past few weeks, two-year fixed rates have slipped below 5%, with big players such as Halifax and HSBC amongst the front-runners. At the same time, five-year rates are inching closer to the 4.50% mark and may potentially dip below that level in the coming weeks. It is likely that more lenders will follow suit in response to these first rate cuts, which is great news for borrowers across Sussex.”Posted on: November 15, 2023, by : Gareth