The 0.99% mortgage, which was to 65% LTV with a £1,499 fee, was only released in June but a HSBC spokesman said the decision to scrap it was not taken lightly.
HSBC has pulled its 0.99% 2-year fix and hiked other fixes due to increases in the cost of funding.
The 0.99% mortgage, which was to 65% LTV with a £1,499 fee, was only released in June but a HSBC spokesman said the decision to scrap it was not taken lightly.
The spokesman added: “When the cost of funding comes down we are always quick to pass on the benefit to customers, and we have been able to do that for almost six months with our 0.99% rate mortgage.
“The cost of funding has gone up over the last month or so and we have had to reflect that in our recent pricing review.
“We regularly review our rates, and while they still provide good value for those looking to move onto or up the housing ladder, should the cost of funding come back down you can be sure we will reflect that with some great deals."
The biggest rate rise was a 0.5% increase to its fee free 60% LTV 10-year fix to 2.99%, though the majority of fixes rose by 0.10% and 0.20%.
However its high LTV mortgages also saw substantial increases, as its fee free 90% LTV 2-year fix was hiked by 0.4% to 2.79%.
The move follows warnings from the likes of John Charcol and the Association of Mortgage Intermediaries that rates will start to rise in the New Year amidst the uncertainties of Brexit and Donald Trump’s election as US President.
Ray Boulger, senior technical manager at John Charcol, said: “This is probably a sign of things to come.
“I’m surprised it’s been so long coming because yields and swap rates have moved up a lot in the last few months.
“Bearing in mind the 0.99% was the cheapest 2-year fixed rate on the market that was a benchmark – once you see the cheapest rate move up that’s often the catalyst for others to do so.”
