HSBC has opened 2026 by becoming the first major lender to make a decisive move on mortgage pricing, unveiling a round of notable rate cuts that many in the market had been anticipating. The changes signal growing confidence that borrowing costs are on a downward trajectory and are likely to intensify competition among lenders in the weeks ahead.
The banking group, which is one of the UK’s largest mortgage lenders, has cut rates across a range of residential and landlord buy-to-let mortgage products. The new rates came into effect yesterday.
For borrowers and brokers alike, HSBC’s move sets an early tone for the year – and follows a reduction in the Bank of England base rate in December to 3.75%. Mortgage brokers said it was good new year news for borrowers as rivals were likely to follow suit.
Beyond rates, there are early signs of stabilisation in the housing market. Real house prices fell in 2025, but easing mortgage rates, softer affordability stress tests, and continued criteria improvements – particularly for first-time buyers – point to modest growth in 2026.
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