In a significant move to support new homeowners, high street banking giant HSBC has announced it will increase its mortgage cashback offer to a maximum of £2,000. The initiative, revealed on 28 December 2025, is specifically designed to assist first-time buyers with the substantial upfront costs of purchasing a property.
Targeted Support for Cash-Poor Buyers
The enhanced cashback scheme is seen as a direct response to the financial pressures facing those trying to get onto the property ladder. Industry experts have welcomed the move, highlighting its psychological and practical benefits for borrowers who have saved hard for a deposit but still face thousands in additional fees.
Mortgage expert Darryl Dhoffer, known as The Mortgage Geezer, stated the offer is a "brilliant move targeting cash-poor first-time buyers." He explained that the £2,000 figure often covers most upfront completion costs, making the deal "psychologically irresistible" and instantly lowering the affordability hurdle for many.
Spark for a Mortgage Market Revival?
The announcement comes alongside a pre-announcement of undisclosed rate cuts for both residential and buy-to-let mortgages. Analysts suggest this dual strategy positions HSBC to capture a maximum influx of applications and could stimulate a market that has experienced a quiet period.
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, emphasised that "cash is king" and this move will provide tangible support. She noted that the often-overlooked costs of buying a home "bite hard," and such incentives offer real value, potentially stimulating the market further if other lenders respond.
Experts Foresee Competitive Lending Battle
The scale of HSBC's intervention has led commentators to predict a more aggressive phase in mortgage lending. Darryl Dhoffer warned that "such a move from a lender of this size signals an aggressive intent to undercut competitors and start a mortgage price war," calling it a highly effective tactic for capturing immediate market share.
Other advisers echoed the sentiment. Ben Perks, Managing Director at Orchard Financial Advisers, said HSBC is clearly keen to attract first-time buyers in a final push for 2025. He confirmed that the £2,000 will "put a large dent in these upfront costs" and, with competitive rates, could make HSBC the lender of choice for new entrants to the market.
Emma Jones of Whenthebanksaysno.co.uk added that with money being tight for almost every first-time buyer, this kind of cashback is precisely what borrowers want to see. She expressed hope that it could provide invaluable support and finally help get the property market moving again after a subdued few months.
