HSBC has launched a market low sub-1 per cent two-year fixed rate mortgage on loans up to £500,000.
The new HSBC product is fixed at 0.99 per cent with a £1,499 product fee up to 65 per cent LTV.
The mortgage is available for purchases and remortgages.
Customers can overpay up to 10 per cent per year with no early repayment charges.
HSBC head of mortgages Tracie Pearce says: “We are constantly looking at ways in which we can deliver value to our mortgage customers and from time to time we have the opportunity to launch a rate with a difference.
“The new 0.99 per cent two year fixed rate is not only the best in category, it is available for both purchases and remortgages up to 65 per cent LTV and through branches, over the telephone, online or through our selected intermediary partners.”
Moneyfacts finance expert Rachel Springall says: “This new 0.99 per cent two-year fixed deal from HSBC enters the market as lowest fixed rate available and the first sub-1 per cent fixed deal since Moneyfacts.co.uk records began.
“This offering is likely to attract borrowers who have a 35 per cent deposit or equity in their home and are looking for a low rate with a well-known brand. As with any deal, applicants should always work out the true cost of the mortgage to decide whether it’s right for them.”
HSBC distributes through Countrywide, London & Country, Springtide Capital, Alexander Hall SPF Private Clients.
In May HSBC launched a two-year deal at 1.16 per cent at 65 per cent LTV with a £1,499 fee.
Yorkshire Building Society followed suit a week later with a 1.14 per cent mortgage at 65 per cent LTV with a £1,345 fee, or as an offset mortgage at 1.34 per cent.