HSBC has become the first major lender to cut mortgage rates this year, a move that could spark a price war over the coming months. The banking group, which is one of the UK’s largest mortgage lenders, has cut rates across a range of residential and landlord buy-to-let mortgage products. Last week the financial data firm Moneyfacts said the average rate on a two-year fixed residential mortgage was running at 4.83%. The average two-year, buy-to-let residential mortgage rate stood at 4.7%. “The cheapest two- and five-year fixes remain below bank rate, reflecting expectations of further cuts,” he said.

Source: The Times January 05, 2026 04:19 UTC