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.”