"Remortgaging, buying a home or getting additional lending with us has never been cheaper."
The rate of 0.89% is available on a 60% LTV two-year fix with a £999 fee.
HSBC has also launched a sub-1% five-year fixed rate at 0.99% up to 60% LTV.
At 75% LTV, five-year fixed rates have reduced by 10bps to 1.19% with a £999 fee and by 15bps to 1.54% fee-free.
The rate cuts come as HSBC introduces a new mobile-friendly Decision in Principe tool online, which typically allows customers to complete a DIP in less than 10 minutes.
Michelle Andrews, HSBC UK’s Head of Buying A Home, said: “Remortgaging, buying a home or getting additional lending with us has never been cheaper. And now, with improvements to our application process, accessing a Decision In Principle online or on your mobile, has never been quicker.
“The benefits of a lower rate, and lower mortgage payments, are obvious, but providing applicants with a rapid Decision In Principle and an instant email confirming our lending, provides applicants with important peace of mind and means they don’t need to hold back on timely decisions when they could be looking at the house of their dreams or their forever home.”