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HSBC launches lowest-ever two-year fix at 1.98%

HSBC Bank Branch 480

HSBC has launched the lowest-ever two-year fixed rate mortgage by cutting its 1.99 per cent deal to 1.98 per cent today.

The direct-only deal is available at 60 per cent loan to value with a £1,999 fee, or £1,499 for current account customers.

HSBC launched a 1.99 per cent mortgage in September 2009. The product ran for two months before it was taken off the market before being relaunched in March 2010.

The bank re-launched the deal in November after lenders such as Abbey and Tesco broke through the 2 per cent barrier last year.

Tesco launched a deal in October after signing up for the funding for lending scheme. The product was pulled after less than a month after the allocated funds were used.

London & Country head of communications David Hollingworth says: “This is just an attempt by HSBC to get coverage by slightly beating the other lenders. It is pathetic.”

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  1. I don’t get excited by low FTB rates when the majority of borrowers are paying through the nose on lenders SVR, when banks can borrow cheaply from BOE lenders should pass savings onto borrowers instead of building up profits for shareholders

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