HSBC is to cut the mortgage rate for its Flexi Loan customers in the UAE by 100 basis points from 1 July.

The rate reduction also applies to home finance customers of the bank’s Islamic unit, HSBC Amanah.

Customers of HSBC’s tracker EIBOR based mortgage will also see their rate adjusted to the three month EIBOR rate.
The EIBOR-based mortgage guarantees to follow the three month Emirates Interbank Offered Rate, which has come down to 2.45% from 4.29% at the beginning of the year, according to data from Bloomberg.