HSBC has launched the lowest-ever two-year fixed rate mortgage by cutting its 1.99 per cent deal to 1.98 per cent.
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.
It was relaunched in March 2010 and again in November last year after lenders such as Abbey and Tesco broke through the 2 per cent barrier.
Tesco launched a 1.99 per cent two-year fix in October after signing up for the funding for lending scheme. The product was pulled after less than a month when the allocated funds were used up.
London & Country head of communications David Hollingworth says the product will not offer much benefit to homeowners.
He says: “This is just an attempt by HSBC to get coverage by slightly beating the other lenders. It is pathetic.”