HSBC passes on 1.5% cut to mortgage customers

HSBC unveils Split Loan Mortgage

HSBC has launched a new mortgage that lets customers split their loan so part of it carries a fixed rate and the rest comes with a variable rate.
HSBC launches new fixed-rate mortgage

HSBC has responded to plans set out in the Budget to exempt new buyers purchasing properties worth less than £250,000 from stamp duty by launching a new mortgage.

Friday, 07 November 2008 12:00

HSBC is passing on the full 1.5 per cent Bank of England Base rate cut to many of its mortgage customers.

The bank revealed 62 per cent of its borrowers would see their mortgage rate plunge in line with the reduction, announced yesterday.

And a further 35 per cent would be unaffected because they were on a fixed rate.

The remaining three per cent of customers paid the standard variable rate, which the bank said was currently under review.

However, HSBC also revealed yesterday its savings rates were now under review following yesterday's rate cut.

Paul Thurston, managing director of HSBC, said: "HSBC will be passing on the base rate change to the vast majority of our mortgage customers.

"Small and Medium Enterprise (SME) customers whose borrowings are linked to the bank base rate will also see their rates reduce by the full 1.5 per cent."

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