HSBC has cut rates across its mortgage range by up to 0.20%, leading to a sub-1% offering.

The reduction applies to more than 20 mortgage products across all LTVs, including the bank’s Mortgage Guarantee Scheme rates at 95% LTV.

Following the update, the 60% LTV two-year fix, with a fee of £999, now comes with a rate of 0.99%, having been cut by 0.5%.

The lender has also introduced a three-year fix at 1.14% with a £999 fee and at 1.34% with no fee.

Further changes include:

• 75% LTV 2 year fixed rate (with £999 fee) down by 0.10% to 1.19%;
• 95% LTV 2 year fixed rate Mortgage Guarantee Scheme (no fee) cut by 0.20% to 3.79% with the £999 fee equivalent reduced by 0.15% to 3.59%; and
• 95% LTV 5 year fixed rate Mortgage Guarantee Scheme rates cut by 0.20% with £999 fee mortgage reduced to 3.79% and the no fee equivalent down to 3.99%.

HSBC UK head of buying a home Michelle Andrews says: “The housing market really is moving, with both purchase and remortgage activity on the rise. Those who are currently looking at moving onto or up the property ladder, and those who have a fixed rate deal coming to an end, can take advantage of some of the lowest rates we have offered for a while.

“For the first time in almost five years we have a sub-1.00% mortgage, and we are also reintroducing our 3 year fixed rate option, with many rates lower than when we last offered them in July 2020. The  longest day of the year is almost upon us, and while people will have more daylight in which to view their first property, their next property or their forever home, they will be able to do so with the backdrop of some fantastic mortgage deals, making their purchase or remortgage much cheaper.”