Lloyds Stock Rises Nearly 2% as HSBC Mortgage Cuts Spur Optimism

Shares of Lloyds Banking Group (LLOY.L) climbed sharply in early London trading, marking a nearly 2% increase as investors reacted to HSBC’s newly reduced mortgage rates. The stock opened at 99.9 pence and touched 101.5 pence before stabilizing around 100.8 pence by mid-morning, signaling renewed confidence in the UK mortgage sector.

HSBC’s decision to cut rates across residential and buy-to-let products has reignited discussion of a potential mortgage price war among major UK lenders. Market analysts suggest rivals like Lloyds could either follow suit to retain market share or benefit from differentiated product offerings that maintain their lending margins.

Investors are eyeing Lloyds’ preliminary 2025 results and Bank of England rate decisions, with mortgage pricing shifts highlighting potential impacts on net interest margins. The MOVE by HSBC sets the tone for the year, prompting speculation that other major banks may adjust pricing strategies.