HSBC has reduced mortgage rates by up to 0.31 percentage points across its first-time buyer, home mover and remortgage product ranges. The cuts apply to selected fixed-rate deals and took effect in June 2026, making HSBC’s mortgage offering more competitive for UK borrowers at a time when many households are reviewing their mortgage costs. If you are buying your first home, moving house or coming to the end of your current mortgage deal, these rate reductions may lower your monthly repayments compared to HSBC’s previous pricing.

What has changed

HSBC has lowered rates on a range of residential mortgage products, with reductions of between 0.10% and 0.31% depending on the loan-to-value (LTV) ratio and deal length. The cuts affect two-year, three-year and five-year fixed-rate mortgages aimed at first-time buyers, existing homeowners moving to a new property, and borrowers remortgaging to switch their rate or release equity (MoneySavingExpert, 2026).

The most significant cuts, up to 0.31%, apply to five-year fixed-rate deals at higher LTV tiers (typically 85% to 90% LTV), which are commonly used by first-time buyers with smaller deposits. Two-year and three-year fixed products have seen smaller reductions, generally between 0.10% and 0.20%, with the exact saving depending on your deposit size and whether you are purchasing or remortgaging.

Who benefits from the rate cuts

First-time buyers with a 10% to 15% deposit stand to benefit most, as the deepest cuts apply to higher-LTV products. A reduction of 0.31% on a £200,000 mortgage over five years could save you approximately £35 to £40 per month, or more than £2,000 over the initial fixed period, although the exact saving depends on the starting rate and product fees.

Home movers can access the revised rates if they are purchasing a new property and need a fresh mortgage. If you are upsizing or relocating, the lower rates may improve affordability and help you secure a larger loan or reduce your monthly outgoings.

Remortgage customers who are coming off an initial fixed or tracker deal, or switching from another lender, can also take advantage of the new pricing. Remortgaging to a lower rate when your current deal ends can prevent you reverting to your lender’s higher standard variable rate (SVR), which may be significantly more expensive (MoneyHelper, 2026).

Read also: Why a Bank of England Rate Cut May Not Move Mortgage Interest Rates in the UK

What to do next

If you are considering a mortgage or approaching the end of your current deal period, compare HSBC’s new rates against other lenders to ensure you are getting a competitive offer for your circumstances. Mortgage rates can change frequently, and the best deal for you will depend on your deposit, loan amount, credit profile and whether you are buying or remortgaging (Which?, 2026).

Speak to an FCA-authorised mortgage adviser or broker to compare products across the market. An adviser can assess your affordability, explain product fees and early repayment charges, and help you decide whether a two-year, three-year or five-year fixed term suits your plans. You can typically apply for a mortgage up to six months before you need it, and many lenders will hold the rate for three to six months while you search for a property or arrange your remortgage.

Important information

This article provides general educational information about HSBC’s recent mortgage rate changes and is not regulated mortgage advice or personalised financial, lending or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Mortgage rates, fees, eligibility criteria and product availability change frequently and vary by lender, product and your individual circumstances. Always verify current terms and rates with an FCA-authorised mortgage adviser or lender before making a decision.

Your home may be repossessed if you do not keep up repayments on your mortgage.

All rates and figures quoted are correct as of June 2026. Check with an FCA-authorised lender or mortgage adviser for the latest terms and rates that apply to your situation.