The bank's tracker mortgages will also move in line with the full base rate cut.
HSBC will also pass on the cuts in full to all small-medium business customers where borrowing is linked to the base rate.
HSBC UK managing director Paul Thurston said: "HSBC is very much open for business, having lent nearly 60 per cent more in mortgages in the first nine months of this year compared with last year. We are committed to helping our personal and business customers through what are very difficult times and passing on the reduction in full will be a welcome relief for many."
HSBC's variable rate has consistently been highlighted as one of the best value on the high street. Last month, Moneyfacts research showed that during the past year, HSBC's variable rate was the cheapest of any major high street lender. Similarly, Defaqto recently found HSBC to have been the nation's cheapest variable rate mortgage provider in 2007.
HSBC continues to provide a range of mortgages to UK homeowners, including the bank's best buy lifetime tracker mortgage, (currently 4.64 per cent) charging 1.64 per cent over Bank of England base rate. The loan has a maximum loan to value percentage of 60% and a booking fee of £799.
