Two major local banks have moved to raise interest rates on new mortgages linked to the Hong Kong Interbank Offered Rate (HIBOR).

Both HSBC and Standard Charted are raising the cap on HIBOR-linked loans by 25 basis points.

HSBC said its cap has now gone from P-2.5% to P-2.25%, while Standard Chartered said its cap will rise from P-2.75% to P-2.5% next Wednesday.

The two banks are the first to make such moves after a recent increase in HIBOR rates linked to rising rates in the United States.

In a press release, HSBC added that it will also launch a new one-year fixed-rate mortgage plan.

It said from now until mid October, new mortgage customers can choose to borrow at a fixed-rate of 2.75 percent for the first year of the loan tenure.

Subsequently, the mortgage rate will be based on HIBOR, with an interest rate cap.

HSBC’s head of mortgages, Catherine Chui, said the new plan “allows customers to lock a mortgage rate at an early stage of the loan tenure and gives them a peace of mind in managing their finances.”