HSBC has reduced rates on 12 of its mortgage products. 

The bank has also updated its lending criteria on how it assesses variable pay. HSBC will now allow income from commission and overtime, in addition to quarterly, half-yearly or annual bonus payments to be used when calculating mortgage affordability. 

Rate cuts have been made to a range of fixed rate deals, available at different LTVs. This includes reductions to both its two-year and five-year fixes at 90 per cent LTV. 

On the two-year deal rates have been cut by 0.15 per cent. For those paying a £999 fee this gives a rate of 3.24 per cent, while the no-fee equivalent charges a rate of 3.44 per cent.

On the five-year five rates have been cut by 0.1 per cent, giving a rate of 3.44 per cent (with a £999 fee) or 3.64 per cent without the upfront fee.

HSBC has also reduced the cost of its fixed rate deals at 85 per cent LTV by 0.1 per cent. Again it offers fee and fee-free options.

The two-year fix at this LTV now charges 2.54 per cent, with a £999 fee or 2.84 per cent without the fee. The equivalent five-year product now charges 2.84 per cent or 3.14 per cent without the fee.