HSBC fixes are available from 4.42% and the landlord exodus is creating opportunities for first-time buyers.
There has been more movement in the mortgage market, with HSBC, Halifax and Santander reducing the price of their rates. HSBC has just cut its residential fixed mortgage rate pricing by up to 0.30%, while Santander is lowering a range of residential and buy-to-let rates. These changes are welcome, particularly after an extended period of volatility. The Bank of England base rate is currently 3.75%, with the next decision due on the 18th of June, so borrowers are still watching closely to see whether to opt for a fix or one of the noticeably cheaper tracker-rate mortgages.
HSBC’s rates have been particularly competitive recently, especially for borrowers with larger deposits or higher incomes. Santander improving its trackers and fixed rates is also good news because lots of clients still want the flexibility of a tracker while the market is moving around. Barclays and Halifax currently offer sub-4% two-year trackers without early repayment charges, and the lenders continue to compete to attract first-time buyers and homemovers with lower-deposit and income-stretch options.
Market optimism has grown amid reported progress towards a peace agreement in the Middle East, despite the lack of tangible clarity, the conflicting signals, and ongoing escalation risks. The war really needs to end to get a bit more normality back in the financial markets. House prices were almost flat in April, with a drop of 0.1%, according to the latest Halifax house price index. The fall follows a 0.5% drop in property prices in March.
HSBC’s 4.42% two-year fix is competitive — but not for everyone
HSBC recently launched a 4.42% two-year fixed rate for Premier customers, alongside a 4.65% five-year fixed rate, although the lowest deals are only available to borrowers who qualify for HSBC Premier. Applicants typically need an excellent credit score and an individual annual income of at least £100,000 paid into an HSBC Premier Bank Account, or £100,000 of savings or investments with HSBC in the UK.
Borrowers who do not qualify for Premier may still be able to access competitive HSBC pricing, with a non-Premier two-year fixed rate around 4.45% and a five-year fixed rate just below 4.5% at the time of writing this article.
Here’s Trinity Financial Group’s latest best buy table for million-pound-plus mortgages.
Renters would buy if mortgage payments matched their rent
New research from Mortgage Advice Bureau found that 47% of UK renters planning to buy their first home in 2026 would buy immediately if their mortgage repayments matched their current rent. The survey also found that 31% said paying the same or less than rent was one of their biggest motivations for buying.
The research surveyed 1,001 UK renters and highlights a clear tipping point: many renters want to buy, but they need to understand whether homeownership is affordable. Lots of renters assume buying will automatically be more expensive than renting, but that is not always the case. The monthly comparison can be closer than people think, especially when buyers have a strong deposit or are considering longer mortgage terms.
The biggest issue is often that renters do not know how much they can borrow, what deposit they need or what the monthly payments would look like. Trinity's brokers can review your income and expenditure and explain how much you can borrow and the best rate available.
More tenants are looking at buying from their landlord
There is also a growing opportunity for some tenants to buy the property they already rent.
Recent research from a large estate agent estimates that 254,000 previously let buy-to-let homes were listed for sale in Great Britain in the 12 months to the end of March 2026. That is equivalent to 697 former rental homes being listed for sale every day, with buy-to-let stock for sale 28% higher than in March 2024.
This change is driven by higher landlord costs, tax changes, compliance requirements and tighter regulation. For some tenants, it may create an opportunity to approach their landlord about buying the home directly. A concessionary purchase mortgage may help when a landlord agrees to sell to the tenant at below-market value. Some lenders may allow the landlord’s discount to count as part, or all, of the buyer’s deposit, although lender rules vary.
Trinity's brokers are speaking to more renters who want to buy the property they already live in. If the landlord is planning to sell, a direct sale to the tenant can make sense for both sides. But please note, these cases need careful handling because lenders treat concessionary purchases differently.
What should mortgage borrowers do now?
The mortgage market is still moving quickly. Some lenders are cutting rates, while others are increasing them marginally. Others are adjusting prices based on funding costs and the number of mortgage applications they are receiving, but while rates are available for longer at the moment, the best deals can change with very little notice.
Borrowers should compare fixed and tracker options, and secure a rate early where possible. Many remortgage borrowers can start reviewing options up to six months before their current deal ends, while buyers may be able to secure a better mortgage rate a few weeks before completion, provided they check the lender's website or speak to a good broker.
The main message for borrowers is not to wait until the last minute. If you are buying, remortgaging or trying to purchase your rental home from your landlord, it is worth checking the market now.
Rates are not as low as borrowers would like, but there are still competitive mortgages available.
The lenders also offer a wide range of products and generous acceptance criteria to help more borrowers get onto the property ladder. People who plan early tend to have more choices, more time to meet lender requirements, and a better chance of securing the most suitable deal. It is hard to say if rates will go up or down, but for the moment, despite rises in the costs of funding mortgages, banks and building societies are still making their rates more attractive.
