HSBC and TSB launch lowest ever fixed-rate mortgages

HSBC has slashed the rate on its two-year fixed-rate deal for borrowers with a 40 per cent deposit to 0.94 per cent, making the offer the cheapest home loan the bank has ever offered.

Last week, TSB announced a 0.94 per cent two-year deal for those remortgaging with a 40 per cent deposit, with a fee of £995.

In June, HSBC unveiled a mortgage rate below 1 per cent for the first time in five years. At the same time, Nationwide Building Society launched a 0.99 per cent mortgage fixed for two years for borrowers with a 40 per cent deposit.

Michelle Andrews, HSBC UK’s head of buying a home, said: “This change includes our lowest ever mortgage rate of 0.94 per cent, plus other rates that are hitting new lows.”

HSBC UK’s renewed mortgage offering now includes a 15 per cent deposit deal fixed for two years at 1.99 per cent, with a £999 fee, also with a fee-saver equivalent at 2.29 per cent. For people with a 10 per cent deposit, the lender is offering a rate of 2.49 per cent fixed for two years, with a £999 fee.

TSB’s deal is available to those borrowing between £5,000 and £1 million and also comes with £300 cashback, The Times reports.