HSBC has announced a wave of mortgage rate cuts affecting millions of customers from 5 January. The changes, which apply to a wide variety of mortgage products, came into effect as the first full working week of 2026 began.
The lender, which serves 14.5 million customers, confirmed reductions of up to 0.18% across its Remortgage, Home Mover, First Time Buyer and Switcher deals. The bank also reaffirmed its promise to keep its 327 physical branches open until at least 2027, alongside a significant increase in branch investment this year.
Fixed-Rate Mortgage Products See Lower Interest Offers
The new rate structure introduced by HSBC applies across a wide spectrum of loan-to-value products, offering improved affordability on both short and long-term fixed deals. Among the most notable changes are cuts to five-year fixed rates on remortgages, with the 75% LTV product with no fee dropping by 0.10% to 3.99%. The equivalent deal with a £999 fee sees a reduction of 0.11%, now sitting at 3.84%.
For home movers, the 2-year 60% LTV with a £999 fee drops by 0.07% to 3.59%, while the five-year equivalent sees a 0.09% fall to 3.79%. First-time buyers benefit from cashback offers in addition to lower rates, with the 2-year 85% LTV at 3.91%, down by 0.08%, and the 90% LTV at 4.15%, down by 0.05%. Both include a £750 cashback incentive.
Oliemata O’Donoghue, Head of Mortgages at HSBC UK, described the move as offering “greater affordability and flexibility in today’s housing market,” stating that the bank remains focused on supporting customers through major life steps such as buying their first home or moving property.
The timing follows the Bank of England’s decision to lower the base rate to 3.75% in December. As reported by Newspage, HSBC has become the first major UK lender to respond, potentially prompting a broader rate adjustment from competitors in the weeks to come.
Physical Branches Guaranteed as Network Investment Increases
Alongside the rate adjustments, HSBC also reiterated its commitment to maintaining its physical presence on high streets across the UK. The bank confirmed it will not close any of its 327 branches before 2027 and will raise its branch investment by 30% in 2026, from £42 million in 2025 to a projected £55.8 million this year.
According to Sally Williams, Head of the Branch Network at HSBC UK, the increased funding is intended to ensure continued service for customers “with more complex needs who value in-person interaction for those moments that matter.” Christopher Dean, Managing Director of Wealth, Premier and Personal Banking, added that the decision reflects a strong commitment to local communities and underlines the bank’s confidence in its retail strategy.
This move comes in response to changing customer expectations, with footfall at branches remaining significant despite digital alternatives. As housing affordability continues to challenge both buyers and renters, HSBC’s announcement suggests an intention to stay competitive and accessible across the full range of its operations.
