HSBC announced another wave of reductions to mortgage rates, which will be implemented this week. Bank of America said it will be cutting interest rates across selected residential and buy-to-let rates. Central banks' decision to raise interest rates has led to an increase in interest rates in recent times, in a bid to control the impact of soaring inflation. The result of this is that borrowers, including mortgageholders, have to pay more. Despite rate increases, financial institutions like HSBC appear to be offering homeowners some relief.
This is a breakdown of the changes to the mortgage rates made by HSBC as of tomorrow.
•• Three year fixed standard at 60 percent, 70 percent, 75 percent, 80 percent, 90 percent LTV decreasing...
A recent meeting with mortgage experts, Newspage spoke to mortgage experts about the latest changes made by HSBC to benefit homeowners. Denni Tyson, a mortgage broker at Henchurch Lane Financial Services, commended the bank's decision and outlined why it will help consumers. For the first time in months, I've been able to write a mortgage with a 'four' at the beginning, he said.
Rohit Kohli, the operations director of The Mortgage Stop, warned that homebuyers may still experience a 'tough winter' despite these reductions. It's welcome news for people rolling off their fixed rates in the coming weeks and months, as this will take some of the pain out of the rises they were expecting, but we're not out of the woods yet. It's going to be a tough winter for many, despite these cuts, a spokeswoman said. The mortgage market is worlds apart from what it was just over a year ago.