Co-Op and HSBC pass on full Bank Rate reduction to mortgage customers
The Co-operative Bank and HSBC have announced that they will pass on the full reduction of the Bank of England Base Rate to their mortgage customers.
Yesterday, the Bank of England’s Monetary Policy Committee made the unscheduled decision to cut the base rate by 0.5% in response to the economic threat of Covid-19.
The Co-op Bank has confirmed that it will reduce its SVR and tracker mortgages by the full 0.50% decrease and will also review the savings rates it offers to customers.
HSBC UK is also reducing its SVRs by 0.50%. All on-sale and off-sale tracker rates will also reduce by 0.50%.
These changes mean HSBC’s residential SVR reduces from 4.19% to 3.69% and its buy-to-let rate is cut from 5.25% to 4.75%.
These changes, for new and existing borrowers, will come into effect from 1 April 2020 for standard variable rates and within 24 hours for tracker rates.
HSBC says it is also reviewing its range of savings products.
In a statement, Co-op Bank said: “We continually review the rates and products we have available to ensure we are offering the best rates we can to our customers in the low base rate environment. We will communicate any changes to our interest rates to our customers in due course.
“Although the Coronavirus outbreak situation is still unfolding, we have a number of plans in place to support our customers, and we would encourage any of our customers who have concerns to contact us. We are already in working with our SME customers to offer support in what we recognise is a challenging time for many small businesses.”
Michelle Andrews, HSBC UK’s head of buying a home, said: “We have recently announced a package of support for customers as they tackle the financial impact of Covid-19. This includes offering support for our mortgages, through considering whether to extend the remaining term of their mortgage, switching rates or switching part to interest-only mortgage arrangements. Reducing the rate of our SVR and tracker rate mortgages will provide additional relief for those on variable rate mortgages.
“HSBC UK’s mortgage rates remain some of the lowest on the market, including our Standard Variable Rate, maintaining our commitment to offer great value for all new and existing customers.”
Source: Financial Reporter