“Better rates for people with smaller mortgage deposits is good news so hats off to HSBC”

"Better rates for people with smaller mortgage deposits is good news so hats off to HSBC. We don't yet know the rates but the fact they're coming down at higher loan-to-values of 80% and above suggests a major lender is confident about the direction of house price travel, and is perhaps looking beyond the Budget."

"HSBC’s latest mortgage rate changes present a clear divide. While higher loan-to-value borrowers, including first-time buyers, will welcome the rate cuts, the majority of HSBC's existing customer base — those with lower loan-to-values — are facing increases. It’s likely the bank is balancing risk in anticipation of future economic shifts, but for many loyal homeowners these rises will feel like a squeeze, particularly as they’ve consistently met their mortgage commitments. The message seems clear: new buyers may benefit, but existing borrowers will be paying more for their loyalty. "

"HSBC’s latest move is a hug for some borrowers and a slap in the face for others. First-time buyers and those with smaller deposits are the clear winners. Lowering higher LTV rates throws them a lifeline just when financial pressure on household budgets is mounting. It’s smart banking and good timing. Sadly, those who’ve saved for bigger deposits are being penalised with higher rates. It’s a sharp shift that feels counter-intuitive. Why punish those who’ve done the hard work? HSBC is clearly betting on a base rate drop and future house price growth. It’s a bold statement of confidence in the property market, despite economic uncertainty."

"This is an interesting move by HSBC to reduce some rates above 80% loan to value. Generally, with higher risk lending, we would expect those rates to be the first to increase so this move slightly bucks the trend. It will make great reading for first-time buyers with smaller deposits or those simply looking to remortgage with less equity."

"It was only a matter of time before HSBC repriced as they were the only lender from the Big 6 that didn’t increase their rates last week. At least it isn’t all doom and gloom and there are still some reductions at higher loan-to-values. Anything that helps people with smaller deposits will be welcomed, as affordability is challenging for many borrowers at present. "

"In the run up to the festive season, borrowers will have been trying to squirrel away money to pay for Christmas, so this will be music to the ears of people pressed for equity at the higher end of the loan-to-value scale. HSBC is often seen by industry professionals as the choir master, conducting the mortgage market. With borrowers with smaller deposits hoping for improvements to rates, this could mean a slightly merrier Christmas."

"HSBC come storming in like a knight in shining armour for higher risk borrowers this morning. As most lenders make rate increases across the board, HSBC are decreasing rates for anyone borrowing more than 80% of their property value. There is almost certainly a sprinkle of strategy here, after all they are a mortgage lender and not a fictional hero. First-time buyers are some of the most active at the moment, so they want to secure these customers. The profit margin can also be more lucrative at the top end, so there's a good opportunity to make a few quid and balance the books. Ultimately, who cares. It'll benefit plenty of borrowers and it's always great to see the word 'decreasing' when we get rate change emails."

"HSBC's latest mortgage shuffle looks like a high-stakes poker game - raising rates for the safe bets while sweetening the pot for the riskier ones. This counter-intuitive move speaks volumes about their market confidence. The bank appears to be playing a clever balancing act, positioning itself ahead of both the anticipated Bank of England rate cut and the looming Autumn Budget. By lowering rates for higher LTV mortgages while nudging up those for lower LTVs, HSBC is effectively redistributing its risk portfolio while showing remarkable confidence in property values. This strategic repositioning suggests HSBC sees the housing market remaining robust, despite Budget uncertainties and potential tax changes. It's a calculated gamble that property values will hold steady or even rise once interest rates begin their anticipated descent, making those higher LTV loans less risky than they might appear."