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Mortgage rates review: TSB, HSBC and Virgin Money's mixed bags

Mortgage rates review: TSB, HSBC and Virgin Money's mixed bags
Matt Browning
Written By:
Matt Browning
Posted:
07/06/2024
Updated:
07/06/2024

HSBC, Virgin Money and TSB made a mix of hikes, slight reductions and large cuts on mortgage rates for borrowers to consider this week.

While rates are generally lower than they were last year, according to Rightmove, lenders still introduced a few increases this week.

Across the mortgage sector, the average two-year fixed rate came to 5.42%, compared to 5.47% at this period in 2023. A five-year equivalent is priced at 5.04% on average, down from 5.11% last year.

However, this could soon change ahead of the general election, as around 100,000 homeowners are set to see higher repayments up until votes are cast on 4 July.

We looked at the mortgage landscape to see what movements lenders have been making.

HSBC’S MINI HIKES

HSBC increased its rates for two-year fixed deals by 0.26% for 95% loan to value (LTV), up from 5.79% to 6.05%.

For a 90% LTV, that also increases, rising to 5.49% from a previous 5.23%.

Other slight increases were made across its residential remortgage range on two-, three- and five-year fee-saver and standard products up to 90% LTV, as well as its five-year fixed premier exclusive.

Its buy-to-let (BTL) existing switching and borrowing more range also rose, with a two-year fixed fee-saver up to 75% LTV rising, along with standard products at 65% LTV.

VIRGIN MONEY MIXES RATES UP

Virgin Money has also made minor changes to its rates, with a mix of reductions and rises. One of the price increases was by 0.1% on its Fix and Switch purchase deals to stand at 5.34%.

At 90% LTV, the lender increased two-year fixed offerings with a £995 fee by 0.05% to start from 5.44%, while fee-free two-year fixes at 95% LTV rose by 0.1% to 5.94%.

Whereas, BTL deals with a 3% fee fell by a fraction (0.02%) and start from 4.03%. For a longer term, select five-year fixes for BTL borrowers with a 1% fee reduced by the same amount and now start from 4.67%.

TSB TAKES PRICES DOWN

TSB made a wave of bigger cuts to its rates, with some 0.25% deductions on two- and five-year fixes.

The provider also lowered product transfer rates by up to 0.15% on five-year fixes and by only 0.05% on three-year fixes. A two-year alternative saw rates rise by up to 0.1%.

While not huge, further reductions were still made on the BTL market, with product transfers going down by up to 0.05% on two-year fixes and 0.1% for the five-year alternative.

If you need another mortgage, its additional mortgage is reduced by up to 0.15% for residential borrowers and 0.1% for BTL borrowers.

Related: 100,000 households will see mortgage payment hike before election