The reductions mean HSBC UK is offering its lowest ever interest rate of 0.94%.

Notable reductions include a 60% LTV 2-year fix cut by 0.05% to 0.94%, which includes a £999 fee, and the fee-saver equivalent reduced by 0.10% to 1.14%.

The lender’s 85% LTV 2-year fix has been cut by 0.30% to 1.99%, with a £999 fee, and the fee-saver equivalent has also been reduced by 0.30% to 2.29%.

The 90% LTV 2-year fix with a £999 fee has been cut by 0.30% to 2.49%.

Michelle Andrews, head of buying a home at HSBC, said: “We have made significant rate cuts across our fixed term mortgages, continuing our support for all buyer types whether they are first time buyers as they look to take their first step on the property ladder alongside those also looking at moving up the ladder with their next home, or those whose fixed rate deals are coming to an end and looking for a new deal.

“This change includes our lowest ever mortgage rate of 0.94%, plus other rates that are hitting new lows, making it much cheaper for home buyers as well as those looking to remortgage, regardless of the size of their deposit or the equity they hold.”