Market news
HSBC cuts its mortgage rates today, but the market average just went up
HSBC's mortgage rate cuts take effect today, 11 August, but they're arriving into a market where the average fixed rate has risen for a month straight.
What HSBC changed
HSBC's reductions went live from 11 August, covering residential mortgages for first-time buyers up to 95% loan-to-value, homemovers, remortgages and deals on energy-efficient properties. Buy-to-let remortgage borrowers and international residential and buy-to-let borrowers up to 75% LTV also got lower pricing. HSBC didn't publish the exact size of the cuts, and applications on the old product codes had to be submitted by midnight on 10 August (Mortgage Solutions).
HSBC isn't alone. Santander, Coventry Building Society, Nationwide and Rely have all cut selected rates in the past week, while NatWest and Halifax made a mix of increases and cuts.
The average fix still went up
Here's the part that matters more than any single lender's move. Moneyfacts data published this week puts the average two-year fixed rate at 5.63%, up 17 basis points in a month from 5.46%. The average five-year fix is 5.67%, up 19 basis points from 5.48% (Mortgage Strategy). Moneyfacts' Rachel Springall put it plainly: lenders raising fixed rates have been outweighing the ones cutting them. HSBC's cut today is one lender pulling in the other direction, not proof the trend has turned.
That matches what we wrote three days ago: fixed rates have been climbing since the Bank of England's July hold, even with individual lenders like Barclays and Nationwide cutting selected deals along the way. A handful of cuts, including HSBC's today, hasn't been enough to pull the average back down.
What it costs on a real mortgage
Take a £200,000 repayment mortgage on a 25-year term. At last month's average two-year fix of 5.46%, the monthly payment is £1,223.40. At today's average of 5.63%, it's £1,243.75. That's £20.35 more a month, or £244 a year, just from the average moving in four weeks. Whether HSBC's own new rate beats or trails that average depends on the specific product and LTV, since HSBC hasn't published the figures — worth getting an actual quote rather than assuming a headline rate cut means a cheaper deal than the one you'd get elsewhere.
What to do if your fix is ending
If your current deal runs out in the next six months, get a rate held with your existing lender and compare it against the market rather than assuming either the cuts or the rises apply to your specific loan-to-value and term. Our guide to what happens when a fixed rate ends walks through the options, and our free timeline tracks your actual renewal date so you're not relying on headlines to know when to start shopping. If you're weighing whether to break your current fix early to grab a lower rate now, the numbers in when it's worth breaking a fixed rate are worth running before you commit.
Frequently asked questions
Does HSBC cutting rates mean fixed mortgage rates are falling overall?
No. Moneyfacts data from this week shows the average two-year and five-year fixed rates have both risen over the past month, even with HSBC and several other lenders cutting selected products. One lender's cut doesn't offset a market-wide rise driven by other lenders raising rates.
How much did HSBC cut its mortgage rates by?
HSBC hasn't published the size of the reductions. The cuts apply to residential mortgages up to 95% LTV, buy-to-let remortgages, and international borrowing up to 75% LTV, live from 11 August 2026. Get an actual quote for your loan-to-value and term rather than assuming a specific saving.
Should I switch to HSBC now if my fix is ending?
Only after comparing HSBC's actual rate for your loan-to-value against other lenders' current offers, not against the headline that rates were 'cut'. The average five-year fix is still 5.67%, so a cut from HSBC's own previous pricing doesn't automatically mean it beats the wider market.
Know your renewal date before the rate does
Add your mortgage to WatchMyMortgage and we'll track your fix end date and flag it when it's time to compare rates, free.
Examples are illustrative and rounded. Your own mortgage offer and lender confirm your actual figures and dates. This is information, not financial advice. For advice on your circumstances, speak to a mortgage adviser regulated by the FCA.