Large lenders HSBC and Virgin Money have announced rate reductions across their mortgage range.
Virgin Money
Virgin Money is launching a range of new mortgage products from today (September 27).
This included buy-to-let portfolio remortgage and purchase exclusives with a 3 per cent fee.
For these new products, a 60 per cent LTV 2-year fixed rate will be launched at 5.17 per cent and a 75 per cent LTV 2-year fixed rate will be at 5.22 per cent.
Additionally, a 60 per cent LTV 5-year fixed rate will be 5.27 per cent, and a 75 per cent LTV 5-year fixed rate stands at 5.57 per cent.
Virgin Money also announced it would be launching a remortgage exclusive product, with selected fixed rates up to 70 per cent LTV and a £995 fee, £1,500 cashback and free valuation, with a rate of 5.38 per cent.
The lender also announced fee reductions to its existing mortgage products, such as to its purchase exclusives, including fixed rates with a £1,295 fee being reduced by up to 0.17 percentage points, starting from 4.82 per cent.
A reduction was also announced to purchase exclusive fixed rate fee-savers with free valuation and the lender is making changes to its selected product transfer fixed rates, which it would be reducing by up to 0.26 percentage points.
The lender added that rates would therefore be starting from 5.17 per cent.
HSBC
HSBC also announced a series of rate reductions across its mortgage products, including to its residential remortgage products.
The lender’s buy-to-let products will also see a rate reduction with 2-year fixed fee saver at 60 per cent, 65 per cent, and 75 per cent LTV seeing a decrease.
Five-year fixed fee saver at 65 per cent and 75 per cent LTV and 5-year fixed standard at 60 per cent and 65 per cent will also experience a decrease.
Similar rate reductions were announced across HSBC’s mortgage products including its residential remortgage cashback products, residential first buyer products, and existing residential customer switching products.
Its international remortgage products, existing buy-to-let customer switching products, and buy-to-let remortgage products will also see a reduction.
HSBC’s announcement was greeted with positivity by Altura Mortgage Finance managing director, Rob Gill.
Gill stated: “With the mortgage price war in full swing, lenders are delivering rate cuts on a daily basis.”
He described this as “great news” for borrowers, and a “significant boost to the property market” as it emerges from a long summer slowdown.
HSBC’s rate reductions will also go live today (September 27).
tom.dunstan@ft.com
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