From Friday 30th November 2012, borrowers with a 40% deposit or equity can secure the rate for a fee of £1,999, or £1,499 for HSBC current account holders.
Peter Dockar, HSBC Head of Mortgages, said:
"While there remains a low expectation of bank base rate increasing in the near future, it has been a week of surprises at the Bank of England and as yet we don't know whether the new Governor will bring a change of heart within the monetary policy committee.
"We have seen increasing numbers of customers seeking the security of a fixed rate and I expect this trend to continue. With the security of our retail deposit funding, HSBC is committed to offering competitive rates to benefit our customers."
Rachel Springall, finance expert at Moneyfacts.co.uk, commented:
"The HSBC 1.99% deal has the lowest rate for a two-year fixed mortgage on the market and existing customers will be rewarded with £500 off the booking fee, which is great to see.
"Other HSBC rate changes launched today include:2 Year Fixed Rates- 60% LTV 2 year fixed - 2.49% with £599 fee5 Year Fixed Rates- 60% LTV 5 year fixed - 3.19% with £499 fee- 60% LTV 5 year fixed - 3.39% fee free."
