HSBC increases Residential SVR from 4.54% to 5.04%. Its buy-to-let SVR will stay the same. The lender has also increased selected fixed rates and removed the two-year fixed standard products from its UK buy-to-let purchase and remortgage range, until further notice.
HSBC allows customers to lock-in new rates, 30-days earlier when coming off current fixed or tracker rate deals without incurring early repayment charges. This change means that the customers will be able to reserve a new rate, 120-days before their current deal comes to an end.
We know that many homeowners will be looking to review their mortgage deal earlier than usual. By extending the window where customers can select a new rate with us, this could help customers during, what could be a stressful and challenging time for them.
Platform relaunches mainstream and buy-to-let mortgages for both new business and product switching. The Co-op subsidiary temporarily withdrew products in August due to high demand.
Virgin Money raises variable rates by 50bps across group. As a result, its residential standard variable rate will increase to 5.99%, its loyalty rate to 5.74% and its buy-to-let variable rate to 6.19%. Clydesdale and Yorkshire Bank rates will also rise.
HSBC pushes up cost of fixed rate deals across residential, buy-to-let and international residential mortgages. Changes affect two, three and five-year fixes and apply to new and existing customers, whether they are purchasing or remortgaging. It also applies to all LTV bands from 60% to 95% LTV.
Virgin Money names Sarah Wilkinson as the new COO. She will join at the start of 2023, having held senior roles at Thomson Reuters, NHS Digital and at the Home Office.
Hybrid model will be “absolutely key” in the future:
Having a trusted adviser in what can be quite a complex mortgage market with thousands and thousands of product choices will remain key for the majority of customers. I think we will augment that with technology enablers.
HSBC and Virgin Money to participate in Bank of England new stress-test scenario to check resiliency against a number of hypothetical scenarios, including GDP falling by 5% over 12 months, inflation peaking at 17% before falling to 11% over the next three-years, unemployment standing at 8.5%, house prices dropping by a third and interest rates peaking at 6% in 2023.
HSBC to temporarily withdraw new business residential and but-to-let products from the market, to allow them to be repriced and released the day following the market turmoil. A HSBC UK spokesperson said:
In order to ensure that we stay within our operational capacity, from time-to-time, we need to limit the amount of business we can take each day.
Virgin Money launches new customer mortgages on 30 September, following the temporary withdrawal of products earlier in the week. This includes core residential, portfolio buy-to-let, selected Shared Ownership, Greener Mortgages and Help to Buy.
HSBC increases rates between 0.89% and 1.6% for existing customers switching, and between 1.46% and 1.86% across its new business range. A HSBC UK spokesperson said:
While current market conditions may be creating some uncertainty, we remain focused on supporting our customers today and in the longer-term. We will take the steps needed to support, how we cater for demand and continue to provide a high-level of service to meet the needs of our customers.
