The bank’s standard fee-free two, three and five year fixed rate mortgages will fall 0.56 per cent, the same term loans with a £799 fee will fall by 0.46 per cent. The fee-free ten year fixed rate loan will fall by 0.72 per cent, with the £799 fee based equivalent mortgage falling 0.62 per cent also.
A special 5.69 per cent three year fixed rate mortgage is also being introduced, available to both new and existing HSBC customers with a booking fee of £999.
HSBC will continue to offer its discount and tracker mortgages with rates as low as 5.39 per cent for two years.
Martijn van der Heijden, head of mortgages at HSBC commented, “With the cost of funding fixed rate mortgages falling over the last few weeks, we are passing on this benefit to our customers and doing all we can to keep the cost of borrowing down. These rate cuts are the equivalent of a saving of a least £500 a year to an average mortgage holder.”
