HSBC UK announces further mortgage rate reductions while increasing lending limits to support customers’ ambitions

HSBC UK has reduced mortgages rates and increased maximum borrowing amounts, helping customers at various stages on the property ladder.

The rate reductions of up to 0.20%, which take effect from today (Wednesday 19th August 2026), offer support to first-time buyers, home-movers and those seeking to remortgage.

Meanwhile the enhanced lending limits, which also come into effect today, increase the amount of borrowing available on residential home purchases and remortgages, helping more people buy their dream home.

The new lending limits reflect the growth in house prices since the bank’s previous increases to lending limits in 2024 and will increase the range of properties available to HSBC UK customers, particularly in areas with higher property prices. They will initially be available to applications through mortgage brokers.

The new capital repayment lending amounts include:

• 90% LTV mortgages increasing from £750k to £775k (£750k limit for flats)
• 85% LTV mortgages increasing from £2m to £3m (£1m limit for flats)
• 75% LTV mortgages increasing from £3m to £5m (£3m limit for flats)

For interest-only mortgages, new maximum amounts include:

• 75% LTV interest-only mortgages increasing from £2m to £3m (£2m limit for flats)

Oli O’Donoghue, HSBC UK’s Head of Mortgages and Savings, said:

“Our enhanced lending limits will open up new opportunities for our customers by increasing the properties available to them.

“This could mean they are able to buy a property with their dream kitchen, an additional bedroom or in another area.

“The change reflects our desire to help customers achieve their homebuying ambitions, whichever step on the property ladder they find themselves on.”

Key mortgage rate reductions, taking effect from today, are:

First time buyers

• 2 Year 90% LTV (no fee) at 5.06% down by 0.03% (with £350 cashback, increasing to £700 for Energy Efficient homes)
• 5 Year 90% LTV (no fee) at 4.93% down by 0.05% (with £500 cashback, increasing to £850 for Energy Efficient homes)
• 5 Year 95% LTV (no fee) at 5.24%% down by 0.09% (with £1,500 cashback, increasing to £2,000 for Energy Efficient homes)

Purchase

• 5 Year 90% LTV (£999 fee) at 4.82% down by 0.07% (with £350 cashback, increasing to £700 for Energy Efficient homes)
• 5 Year 90% LTV (£999 fee) PREMIER at 4.79% down by 0.07%

Remortgage

• 2 Year 85% LTV (no fee) at 5.17% down by 0.20% (with £350 cashback for Energy Efficient homes)
• 5 Year 90% LTV (no fee) at 5.23% down by 0.14% (with £350 cashback for Energy Efficient homes)
• 5 Year 85% LTV (£999 fee) PREMIER at 4.89% down by 0.12%

The rate reductions and increased lending limits complement other changes we’ve made to support customers onto the property ladder, move home, or remortgage, including a new Loan-to-Income (LTI) multiple of up to 5.5 times salary for first-time buyers and the introduction of automated remortgages via LMS DART to ease the conveyancing process.

Media enquiries to:

Robert Cox, Media Relations, HSBC UK, robert.cox@hsbc.com