Bank promise fuels new mortgage price war

The latest business news from
The latest business news from
Have your say

A new mortgage price war has intensified after a bank brought back a pledge to match the rates on offer from its High Street rivals.

HSBC said that for new and existing customers with deposits or equity between 10 per cent and 30 per cent, it will match the on-sale mortgage rates being offered by several other major providers with a booking fee of up to £1,499.

The bank said that interest on its range of 70, 80 and 90 per cent loan-to-value (LTV) mortgages will be the “lowest on the High Street” for two-year and five-year fixed rates, lifetime trackers and two-year discount rates.

The HSBC said its “high street specials” range will match on-sale rates available between 70 and 90 per cent LTV offered by Barclays (Woolwich Mortgage), Lloyds, Nationwide, NatWest, Royal Bank of Scotland, Santander and TSB. The offer, which is set to run until the end of February, will apply on “like-for-like” comparisons. HSBC ran a similar pledge from late autumn 2013 until early 2014.

In recent months, a string of mortgage providers have been slashing their rates to some of the lowest levels they have ever offered as expectations over exactly when the Bank of England base rate will start to increase from its historic 0.5 per cent low have been pushed back.

The recent overhaul of stamp duty in the Autumn Statement has fuelled expectations that housing market activity is set to pick up again early in the New Year.