HSBC will introduce a new fixed-rate product for high-income earners on Monday, kicking off a series of housing interest rate cuts.
The high street bank is debuting a two-year Premier exclusive product with a £999 fee for most home, purchase, mortgage and existing customers. 
The announcement was made in a memo to brokers, but no further details were disclosed. UK and international customers can apply.
We are also reducing the pre-order fee for Premier Exclusive products to £999 for five years.
Among other changes, the lender has also increased the range of amendments for UK five-year home movers, first-time buyers, remortgages and loan-to-value switches from 70% loan to 90% LTV. Reduce.
The 5-year International Premier Exclusive options at 70% LTV and 75% LTV will also decrease.
The bank said its product search tool and procurement system will be updated on Monday.
Nicolas Mendez, John Charcol Mortgage Technical Manager, said: “HSBC is announcing new mortgage rate reductions tailored specifically for individuals who meet Premier eligibility criteria, to help limit the potential impact on service levels.”
“Eligibility requires an annual income of at least £100,000 paid into an HSBC Premier bank account, or savings or investments of at least £100,000 with HSBC in the UK.”
He added: “HSBC's Premier customers already enjoy the best purchase rates on the market and this latest price change further strengthens our position in the 70% LTV to 90% LTV range.” added.
The bank's cuts come as swap rates have been rising over the past month and could rise further due to the current bond market turmoil.
The two-year swap rate rose to 4.306% on Jan. 8 from 4.046% the previous month, and the five-year rate rose to 4.168% from 3.767% in the same period, according to Chatham Financial.
“This move is particularly noteworthy at a time when swap rates are rising unexpectedly,” Mendez said.
“Although most financial institutions have not significantly increased interest rates in response to the recent increase in swaps, the pressure to do so is increasing.
“Swap rates, which have a huge impact on mortgage pricing, have been rising steadily, narrowing the gap between the best low LTV mortgage deals.
He added: “Financial institutions appear to be refraining from raising interest rates to avoid market turmoil, but this restraint is unlikely to continue indefinitely.
“If swap rates continue to rise, it is inevitable that mortgage rates will be forced to fall at some point because lenders will not be able to absorb higher costs forever.”
