HSBC kicks off 2026 with mortgage pricing improvements and fixes priced from 3.60%
Quick Summary
HSBC is one of the first big banks to lower mortgage rates this year and start offering fixes priced from 3.60%. Competition is expected to intensify this year between banks and building societies, and the remortgage market is expected to grow.
As we enter 2026, the UK mortgage market is already showing signs of renewed competition — and HSBC has set the pace. From 5 January 2026, HSBC UK became one of the first major lenders to cut mortgage rates across a wide range of fixed-rate products, offering welcome pricing improvements for borrowers across the board.
What has HSBC changed?
HSBC’s recent update includes rate reductions on fixed deals across multiple customer groups, including:
- First-time buyers — lower pricing on 2- and 5-year fixed products across for those with a range of deposit sizes.
- Home movers and remortgagors — improved fixed-rate options, making it more attractive to switch or refinance.
- Existing residential customers — cuts on product switches and additional borrowing.
- Buy-to-let borrowers — rate reductions across key fixed periods.
Aaron Strutt, product director at Trinity Financial, says: "HSBC’s new two-year fix home mover rate is slightly more expensive than Santander's current deals, and HSBC’s latest five-year home mover fix is also slightly higher than NatWest and RBS. HSBC’s lowest rates are reserved for those who already have a Premier bank account or are prepared to open one. First-time buyers have to pay a slightly higher rate. HSBC has also made changes to its buy-to-let stress test calculations, so landlords should be able to access larger loan sizes."
"These changes cover a broad set of loan-to-value brackets (from around 60% up to 95% LTV) and include both standard and fee-saver options, giving borrowers increased choice in finding the right deal for their circumstances."
Why it matters
HSBC’s decision to reduce fixed mortgage pricing comes as expectations of future Bank of England base rate cuts grow, following a reduction in December 2025 to 3.75% and a market anticipating further cuts this year.
For many homeowners, this timing is significant — millions of fixed-rate deals are due to expire in 2026, prompting a wave of refinancing and product switching. HSBC’s pricing changes aim to capture this demand early and set a competitive tone in the lender market.
What this means for you
- Borrowers looking to buy could benefit from lower fixed rates with HSBC — particularly if you’re entering the market as a first-time buyer.
- Homeowners nearing the end of a deal may find HSBC’s improved pricing beneficial for remortgaging, potentially saving on monthly repayments.
- Existing HSBC customers can also take advantage of reduced rates when switching products or borrowing more.
With the mortgage landscape already showing early signs of a price-led competition in 2026, HSBC’s move could encourage other lenders to adjust their pricing accordingly — meaning more options and potential savings for borrowers later in the year.
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