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HSBC slashes flagship two-year fix to 1.49%

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HSBC has cut its flagship two-year fixed rate by 19 basis points from 1.68 per cent to 1.49 per cent, making it the lowest two-year fix in the market.

The direct-only loan is available to those with a 40 per cent deposit and comes with a £1,999 fee.

HSBC has also reduced the rates on a two-year discount from 1.75 per cent to 1.69 per cent and a lifetime tracker from 2.28 per cent to 2.19 per cent, with fees of £1,499 and £1,999 respectively.

Along with the rate cuts at 60 per cent LTV, HSBC has introduced two new five-year fixed rate loans at 60 per cent LTV – a 2.59 per cent product with a £1,999 fee and a 2.99 per cent product with a £99 fee.

HSBC head of mortgages Peter Dockar says: “We have seen increasing confidence in the market and, with mortgage rates at an all-time low, now is a good time for borrowers to review their existing rates.”

Trinity Financial Group product and communications manager Aaron Strutt says: “I do not think many lenders will go lower but I cannot imagine Yorkshire & Chelsea will want to see HSBC leading the best buy market, so it would come as no surprise if they were to offer a lower rate in the coming weeks.”

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