"For the first time in almost five years we have a sub-1.00% mortgage, and we are also reintroducing our three-year fixed rate option"
The rate cuts mean the bank will be offering a sub-1.00% mortgage for the first time in almost five years in addition to re-introducing a three-year fixed rate option.
The sub-1% mortgage is a 60% LTV two-year fixed rate at 0.99%, which comes with a £999 fee.
At 60% LTV, a three-year fixed rate is available at 1.14% with a £999 fee or 1.34% fee-free, 0.15% lower than when they were last available in July 2020.
Elsewhere, a 75% LTV two-year fixed rate has been reduced by 10bps to 1.19% with a £999 fee.
Across HSBC's 95% LTV Mortgage Guarantee Scheme products, a two-year fixed rate has been reduced by 0.20% to 3.79% with no fee and by 0.15% to 3.59% with a £999 fee. Five-year fixed rates have been cut by 20bps and now start at 3.79% with a £999 fee or 3.99% fee-free.
Michelle Andrews, HSBC UK’s Head of Buying a Home, said: “The housing market really is moving, with both purchase and remortgage activity on the rise. Those who are currently looking at moving onto or up the property ladder, and those who have a fixed rate deal coming to an end, can take advantage of some of the lowest rates we have offered for a while.
“For the first time in almost five years we have a sub-1.00% mortgage, and we are also reintroducing our three-year fixed rate option, with many rates lower than when we last offered them in July 2020. The longest day of the year is almost upon us, and while people will have more daylight in which to view their first property, their next property or their forever home, they will be able to do so with the backdrop of some fantastic mortgage deals, making their purchase or remortgage much cheaper.”
