HSBC launches new £2,000 deal as ‘fuse lit’ for mortgage price war | Personal Finance | Finance

HSBC has launched a new deal offering first–time buyers up to £2,000 in cashback, and brokers say it may have just lit the fuse on a winter mortgage price war.

The offer, available from Wednesday, December 3, will come alongside a further round of mortgage rate cuts on the bank’s residential and buy-to-let ranges. The reductions come as SWAP rates – which fixed rate mortgages are priced off – have edged down recently, increasing expectations that the Bank of England could cut interest rates when it next meets on December 18.

Brokers have welcomed the news after a sluggish run-up to the Budget for the property market.

Katy Eatenton, mortgage and protection specialist at St Albans-based Lifetime Wealth Management, said: “Cash is king and this move from HSBC will provide support to lots of first-time buyers.

“The costs of buying a home are often overlooked, but they bite har,d and cashback incentives like this can be of real value to aspiring homeowners. This could stimulate the market, especially if other lenders follow suit.”

Ben Perks, managing director at Stourbridge-based Orchard Financial Advisers, said HSBC have come out swinging after the Budget.

He added: “They are clearly keen to attract all the first-time buyers on offer in a final push for 2025. There’s always a lot of talk about how hard it is to save for a deposit, but on top of that, there are a few grand in fees to be paid.

“The £2,000 on offer here will put a large dent in these upfront costs and, as long as the rates are competitive, HSBC will become the lender of choice for first-time buyers.”

Ranald Mitchell, director at Norwich-based Charwin Mortgages, described the move as “a straight-up power play, giving buyers cash at the exact moment they’re financially stretched to breaking point”.

He continued: “With margins razor-thin, these boosts genuinely sway where borrowers go. Add in tomorrow’s rate cuts, and it’s clear HSBC wants to dominate the first-time buyer market.

“The fight for new borrowers is exploding, and HSBC has just lit the fuse on a winter mortgage price war.”