Last month, the lender launched a mortgage with a rate of 0.99 per cent for customers with a 40 per cent deposit. The 0.99 per cent deal is in effect a 2.95 per cent discount off HSBC’s 3.94 per cent standard variable rate (SVR), which lasts two years. From Monday, HSBC will also cut the booking fee on this deal by £500 to £1,499.
Santander launched its lowest ever two-year fixed-. Available only for remortgages, it offers a 1.84 per cent rate for a £995 fee on condition of at least 40 per cent equity. Santander said the deal will be available for “a limited time only”.
Barclays also made some mortgage rate cuts this week, with its new deals including a five-year fixed-rate remortgage loan at 2.79 per cent for people with a 30 per cent deposit willing to pay a £999 fee.
Lenders have been slashing their rates since the start of autumn and mortgage experts predict more to come.
There have been suggestions that lenders are looking to retain customers currently sitting on a standard variable rate (SVR) mortgage and who might jump to another deal when the Bank of England base rate eventually starts to climb, with expectations that this will happen towards the latter half of 2015.