HSBC announced that it would be raising some of the rates on its cheapest mortgages, while cutting more expensive offers.

The bank is raising rates on its lowest priced products, which are reserved for those with larger deposits and homeowners who remortgage with large equity.

HSBC will not reveal any changes before tomorrow. However, the 3.82% five-year fixed rate is expected to rise for buyers with a minimum of a 40% deposit.

The 3.83% that is currently offered to those who remortgage with at least 40% equity will likely be raised.

HSBC has also lowered rates on some products to help those who are buying small deposits, or remortgaging their homes with lower equity.

Homebuyers who have a 20% deposit or less, or owners with equity of less than 20% should be able to benefit from this.

Halifax and Barclays increased home loan rates last week, following similar actions by NatWest Santander and TSB.

Market analysts and mortgage brokers believe that HSBC's decision to reduce rates for smaller depositors shows the bank's confidence in rising house prices.

Ben Perks is the managing director of Orchard Financial Advisers, a Stourbridge-based financial adviser. He told Newspage that HSBC has lowered rates on loans exceeding 80% of the property's value.

They want to keep these first-time customers. This will benefit many borrowers.

Rohit Kohil added that this shows confidence in the market. It also aims to increase access to borrowing for first-time home buyers, and people with lower equity.

Those with lower LTV will also see an increase in their borrowing cost, but this could be HSBC adjusting the business level, rather than a broader trend. These adjustments are likely the result of balancing demand and risk.