HSBC Holdings PLC (LSE:HSBA) has followed rivals Barclays and NatWest and started to cut its mortgage rates ahead of what is expected a run of base rate reductions to the end of the year and into 2025.
NatWest announced reductions to its rates on Friday with Barclays cutting some rates Tuesday and now HSBC has said it will lower its rates from Wednesday, though there are no details yet.
Barclays is offering a five-year fix aimed at those with a deposit of at least 40% at 4.23% with a £899 fee.
That compares to an average five-year deal interest currently of 5.53%.
For those with a 25% deposit, the interest rate is 4.38% with the same £899 fee.
Hopes that base rates will start to fall have followed a drop in inflation to 2%, with predictions it will go below that next month.
The Bank of England's Monetary Policy Committee (MPC), which sets interest rates, next meets on 1 August but although the last meeting kept rates on hold economists said there was a notable tone shift pointing to a cut soon.