The new rate will be 5.44 per cent, down from 6.25%.
Of HSBC customers with variable rate mortgages, over 95 per cent have benefited from a 1.5 per cent rate cut, as their mortgage is linked to the Bank of England's rate. HSBC announced on 6th November that it was passing on the cut in full to all its tracker rate customers.
HSBC's is offering its existing standard variable rate and discounted rate borrowers the option of moving onto the bank's current ‘best buy' lifetime tracker mortgage, free of its £799 booking fee*. This lifetime tracker (currently 3.99 per cent) charges 0.99 per cent over Bank of England Base Rate. All customers need a minimum of 40% equity in their home to receive this loan.
According to HSBC, HSBC's standard variable rate has consistently been highlighted as one of the best value on the high street. Last week Moneyfacts research showed that over the last year, HSBC's SVR was the cheapest of any major high street lender. Similarly, Defaqto recently found HSBC to be the nation's cheapest standard variable rate mortgage provider in 2007.
