HSBC Holdings PLC (LSE:HSBA) has signalled a string of mortgage rate reductions to kick off the new year, in line with a wider drop across the market in recent days.
The lender on Friday said rates across its residential and buy-to-let deals would be reduced from Monday, including on two, three, five and 10-year fixed products.
Comparison site Moneyfacts separately reported on Friday that mortgage rates across the country had headed lower as businesses returned following the New Year’s Day break.
Average two-year fixed mortgage rates sat at 5.4767% come Friday, according to Moneyfacts, against 5.4808% before the turn of the year.
“HSBC’s decision to start the year with a reduction in mortgage rates across its product range is a welcome move for the housing market,” Nick Mendes, of mortgage broker John Charcol, commented.
“Following the festive period, this change comes at a crucial time, as many potential home movers start re-engaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.”
Stamp duty is set to rise from April, meaning first-time buyers will pay the tax on homes worth over £300,000, against £425,000 previously, and others will be charged at £125,000, compared to £250,000 beforehand.