HSBC has reintroduced a sub 1% mortgage rate as part of a product refresh.
The high street bank says the move will make it cheaper to get onto or move up the property ladder, or remortgage with the lender when a current fixed-rate loan comes to an end.
It says new sub 1% mortgages, with a £999 fee, are available for purchase and remortgage borrowers who qualify for deals at 60% loan to value as part of its refreshed tracker range.
The bank has cut a selection of residential rates across all LTVs, which include:
* 60% LTV two-year tracker rate product for remortgage, with a £999 fee, down by 0.15% to 0.99%
* 60% LTV five-year fixed-rate loan for remortgage, with a £999 fee, down by 0.10% to 1.44%
* 60% LTV five-year fixed-rate fee saver offer for remortgage five-year down by 0.10% to 1.59%
* 85% LTV five-year fixed-rate deal for purchase and first-time buyers, with a £999 fee, down by 0.10% to 1.79%
* 90% LTV five-year fixed-rate loan for purchase and FTBs, with a £999 fee, down by 0.10% to 2.19%
The lender adds it has also made selected cuts to its buy-to-let range, which sees rates for purchase and remortgage borrowers reduced by up to 0.1%.
HSBC head of buying a home Michelle Andrews says: “We are following rate reductions just before Christmas with a further rate refresh, where we are reducing our fixed-rate mortgages by up to 0.1%, while our more flexible tracker deals are also being reduced across the range.
“By providing a sub 1% option for customers with a higher amount of equity and reducing higher LTV rates for house purchases, we are offering those wishing to refinance their existing home, or seeking their first or next move on the property ladder, access to highly competitive rates with the option to choose between more flexible deals or secure longer term payment security.”
A range of lenders ditched their sub 1% mortgages last November ahead of an expected interest rate rise from the Bank of England, which did not occur.
The Bank did raise rates from its historic 0.1% low to 0.25% last month, its first increase in more than three years, saying that the move was designed to combat inflation.
