HSBC is cutting rates from today, and Santander cutting from tomorrow, as the mortgage price war gathers pace.

Santander UK has announced that from tomorrow – Thursday April 17 – it is reducing interest rates across its mortgage products including its home mover, first-time buyer, new build, remortgage and buy to let range.

The new pricing reflects the recent reduction in SWAP rates and sees the lender reintroduce sub-4% rates to its home mover offering. 

Examples of the new products and rates include:

Home mover

All two, three, and five year fixed rates reduced by up to 0.13% including:

• two-year fixed, 60% LTV, £999 fee at 3.97% – reduced by 0.08%
• three-year fixed, 60% LTV, £999 fee at 3.99% – reduced by 0.09%

First-time buyers

All two, three and five year fixed rates between 60-95% LTV will be reduced by up to 0.17%  including:

• two-year fixed rate, 95% LTV, £0 fee and £250 cashback at 5.14% – a reduction of 0.15%
• three-year fixed, 75% LTV, £0 fee at 4.37% – a reduction of 0.17%

New build 

Reductions of up to 0.21% on all three-year fixed, first-time buyer rates from 60-95% LTV, including:

• three-year fixed, 95% LTV, with £0 and £250 cashback, at 5.23% – a reduction of 0.21%

Meanwhile HSBC has announced rate reductions across a wide selection of its products, with changes taking effect from today.

The cuts apply to both new and existing customers, covering a range of fixed-term options and loan-to-value (LTV) ratios.

For existing residential customers switching, HSBC is lowering rates on 2-year and 5-year fixed Fee Saver and Standard products. Reductions apply across multiple LTV tiers, including 60%, 70%, 75%, 80%, 85%, 90%, and in some cases, 95%.

Premier Exclusive products, which are tailored for Premier banking customers, will also see rate decreases in both 2-year and 5-year fixed options.

HSBC is also cutting rates across similar product lines as those available for switchers, including the Premier Exclusive range.

The lender is also lowering rates for first-time buyers and home movers purchasing properties with an A or B Energy Performance Certificate rating. These changes affect both Fee Saver and Standard products, mirroring the reductions seen in the wider residential mortgage portfolio.

Re-mortgagers will also see reductions in fixed-term products. Both 2- and 5-year fixed Fee Saver and Standard mortgages are included, as are High Value Mortgage offerings. These are available across 60%, 70%, 75%, 80%, 85% and 90% LTVs.

For buy to let investors, HSBC has lowered rates for property purchases at 60%, 65%, and 75% LTVs. This includes standard and Fee Saver products, as well as those with higher upfront fees such as the £3,999 options.

Premier Exclusive BTL products will also see rate cuts across the same tiers.

BTL remortgage rates are similarly reduced across the board, including 2- and 5-year products, and apply to both standard and Premier Exclusive customers.

HSBC’s international offerings are also part of the rate update. Rate reductions have been introduced on 2- and 5-year Fixed Fee Saver, Standard, and Premier Exclusive products for both residential and BTL customers. These apply at 60%, 65%, 70%, and 75% LTV levels.

The bank has reminded brokers that Premier mortgage rates are available only to customers who hold an HSBC Premier current account. If a customer does not have a Premier account at the time of application, standard products must be selected. Once the Premier account is open, intermediaries may submit an Application Amendment Form or use HSBC’s ‘Chat with us’ service to secure the preferential rate.