Ninety five per cent of HSBC mortgage customers will see their mortgage rate fall in line with the MPC's cut, or will be unaffected as they are on a fixed rate
Small to Medium-sized companies with floating-rate borrowing - around 97 per cent of HSBC's SME borrowers - will also fully benefit from the rate cut
HSBC introduces a new ‘SVR beating' 2.99 per cent two year fixed mortgage and cuts standard fixed mortgages by up to 0.4 per cent
HSBC standard variable rate (3.94%) is under review
Andy Mielczarek, head of retail products at HSBC UK commented; "HSBC is very much open for business, we have £15 billion allocated for mortgage lending in 2009 and we will be passing on the full base rate decrease to the vast majority of our customers. In addition, we have increased the amount we will lend to small to medium sized enterprises (SMEs) by £1billion. This borrowing is almost entirely linked to the bank base rate so SMEs will also see their rates reduce by the full 0.5 per cent."
A new sub 3% fixed rate remortgage deal is available from HSBC for a limited period from today. The new fixed loan is priced to appeal to customers currently paying standard variable rates, and enables them to lock-in to a super low 2.99% rate until February 2011. For example, a Northern Rock customer with a £150,000 capital repayment mortgage paying the bank's 5.09% SVR, can save £3,385 over the 2 years. What's more, customers can make further savings by taking advantage of HSBC's overpayment feature, which allows up to an extra 20% of each month's payment to be repaid without incurring any charges.
The offer is limited, so customers will need to be quick, the deal will end on 28 February 2009 at the latest. It is exclusive to HSBC's branches and telephone mortgage service from Friday 6 February.
