HSBC has announced mortgages rate changes from today.

Rates will be lowered on its UK residential existing customer switching range including the two-year fixed fee saver at 60%, 70%, 75% and 95% LTV and the five-year fee saver at 60%, 70%, 75%, 90% and 95% LTV.

Prices have also been trimmed on the bank’s UK residential existing customer borrowing more range including the 10-year fixed fee saver at 60%, 70%, 75% and 80% LTV.

The bank has also lowered rates on first-time buyer, residential home mover, remortgage, buy-to-let and international products.

Commenting on HSBC’s changes, John Charcol mortgage technical manager Nick Mendes says: “HSBC has kicked off 2026 with the first notable mortgage rate cuts of the year, trimming pricing across a wide range of fixed deals rather than making a narrow headline change.”

“While this will be welcomed by borrowers, it’s worth keeping expectations in check. Markets broadly expect Bank Rate to bottom out between 3.00% and 3.25%, likely requiring at least two further quarter-point cuts this year. However, much of that outlook is already priced into fixed-rate mortgages.”

“The cheapest two- and five-year fixes remain below Bank Rate, reflecting expectations of further cuts. As a result, fixed mortgage rates are likely to fall by less than Bank Rate from here, and by the end of 2026 could once again be priced above Bank Rate as markets judge rates to be close to their long-term floor.”

“This explains why lenders tend not to react dramatically to individual base rate decisions. Mortgage pricing is driven far more by expectations for where rates settle over the medium term than by short-term policy moves.”

“For households, 2026 will still be a year of adjustment. Around 1.8 million borrowers are due to refinance. Those coming off two-year fixes taken in 2024 should see some improvement, while borrowers rolling off five-year deals agreed when rates were near historic lows will still face higher repayments, even after recent cuts.”

“Competition between lenders remains intense, which should limit how far rates can rise, but the scope for sharp further falls looks limited unless markets become convinced Bank Rate will settle closer to 3%.”

“Beyond rates, there are early signs of stabilisation in the housing market. Real house prices fell in 2025, but easing mortgage rates, softer affordability stress tests, and continued criteria improvements – particularly for first-time buyers – point to modest growth in 2026, with significant regional variation and flats continuing to lag behind houses.”