This is part of the £15bn fund that HSBC has allocated for new mortgage lending in 2009, twice what the bank lent in 2007.
The mortgages will be available to HSBC Plus account and Premier customers at a rate of 4.99 per cent, fixed for two years.
Remortgage customers will be unable to apply for the range, however HSBC says many borrowers will find their existing lender’s standard variable rate to be their cheapest option when they roll off their fixed, tracker or discount deals.
The mortgages will only be available from HSBC’s branch network.
HSBC personal financial services group general manager Joe Garner says: “Although house prices have fallen, and continue to fall, they won’t fall forever. At HSBC we are standing by our customers through thick and thin and these changes mean we can continue to give customers the best possible deal on their mortgage. This is a one billion pound commitment and it says we appreciate our customers’ loyalty.”