In the mortgage industry, the market is hoping that HSBC’s cuts will spark new competition.

As of tomorrow, HSBC will be lowering some fixed rates across its residential and buy-to-let mortgage ranges for new and existing clients who are seeking a new agreement, according to Jo Thornhill’s article. The reductions include reductions to fixed rates for residential purchase and remortgage for two, three, and five years, as well as reductions to fixed rate deals on product transfers (deals that are available to existing customers), buy-to-let purchase and remortgage deals, and overseas holiday property purchase and remortgage deals.

On the morning of tomorrow, April 9th, the new rates and deals, which are available both directly and through brokers, will be made available on the website of HSBC. The current home refinancing rates offered by HSBC begin at 4.71% for a fixed period of two years and at 4.33% for a fixed period of five years. The product cost for both of these packages is £999, and they are available to borrowers who have at least 40% equity in their house (or a loan-to-value ratio of 60%).

NatWest is currently offering the best bargain for a two-year fixed-rate remortgage deal, which is 4.68%. Additionally, NatWest is offering the best deal for a five-year fix, which is 4.24%. However, this deal is only available online, and borrowers are required to apply and manage their accounts online. A charge of £1,495 is required, and both rates are offered up to a loan-to-value ratio of sixty percent. “I expect to see HSBC improve on the minimal cuts we’ve seen from [its] competitors in recent days,” said Nick Mendes, a broker at John Charcol.

Mendes is hoping that the decision by HSBC will spark a round of price cuts among lenders. In the case of purchase and remortgaging products, for instance, NatWest has done a good job of maintaining its position as one of the best buys; however, HSBC has the potential to surpass it when it introduces its new rates tomorrow.