HSBC UK has confirmed a significant wave of mortgage rate cuts that will affect millions of its customers across the country. The changes, which came into effect from January 5, 2026, see reductions of up to 0.18% on a range of popular deals.
Rate Reductions Across the Board
The high street banking giant has decreased rates by as much as 0.10% for certain eligible customer agreements. Oliemata O'Donoghue, Head of Mortgages at HSBC UK, stated that the move is designed to provide tangible support to borrowers. "The reduction in mortgage rates is a real boost for borrowers, offering greater affordability and flexibility in today’s housing market," she said. "At HSBC UK, we’re focused on making it easier for customers to move, remortgage, buy their first home and plan for the future."
Full Breakdown of New Mortgage Rates
The bank has published a comprehensive list of the new rates, which apply to various customer segments. For those looking to remortgage, a two-year deal at 60% loan-to-value (LTV) with a £999 fee now stands at 3.69%, down by 0.02%. A comparable Premier product is now 3.66%. Five-year remortgage deals at 75% LTV have seen some of the most substantial cuts, with the fee-assisted version falling 0.11% to 3.84%.
Home movers also benefit, with a two-year deal at 90% LTV receiving a 0.18% cut to 4.02%, and this product includes £250 cashback. For first-time buyers (FTB), a two-year deal at 85% LTV is now 3.91% (down 0.08%) and comes with £750 cashback. Another FTB product at 90% LTV is now 4.15%, reduced by 0.05%.
The changes also extend to the bank's Switcher range, with two-year and five-year products at 60% LTV seeing decreases of 0.04% and 0.06% respectively.
What This Means for Borrowers
This coordinated reduction in HSBC mortgage rates represents a positive shift in the lending landscape, potentially lowering monthly repayments for a vast number of existing and prospective homeowners. The cuts across different LTV brackets and product types indicate a broad effort to improve accessibility and affordability. For many, especially first-time buyers grappling with high deposit requirements, the attached cashback offers provide additional valuable support to cover moving costs.
The announcement positions HSBC competitively in the UK mortgage market and may prompt other lenders to review their own pricing. Borrowers are advised to seek professional financial advice to understand how these new rates might apply to their specific circumstances.
