HSBC cuts mortgage rates with some deals falling below 5% as average fixes near 6%

HSBC has emerged as one of the few lenders offering relief to borrowers, trimming rates by as much as 0.19 percentage points and bringing back sub-5% products that had all but disappeared. The bank's lowest two-year fixed rate now stands at 4.99%, though it is restricted to remortgage customers with equity of at least 40%. Across the wider market, average fixed rates are hovering just under 6%, piling pressure on buyers and those rolling off cheaper deals. The reductions apply to first-time buyers, home movers, remortgage customers and buy-to-let landlords.

Across the entire market in early October, only nine mortgages were priced below 5% — a sharp contrast to the widespread sub-4% deals available at the beginning of the year.

The Bank of England has kept base rate at 3.75% across six consecutive meetings — yet rising energy costs and tensions in the Middle East have shifted expectations toward a rate increase rather than a cut.

HSBC's leading deal for first-time buyers is a two-year fix at 5.19%, carrying a £999 fee and £250 cashback, available to those putting down a 20% deposit.