The bank is also reviewing its 3.95% standard variable rate.
The offer is limited and will end on 28 February 2009 at the latest. It is exclusive to HSBC’s branches and telephone mortgage service.
It says 95% of HSBC mortgage customers will see their mortgage rate fall in
line with the MPC’s cut, or will be unaffected as they are on a fixed rate.
Andy Mielczarek, head of retail products at HSBC UK, says; “HSBC is very much open for business, we have £15 billion allocated for mortgage lending in 2009 and we will be passing on the full base rate decrease to the vast majority of our customers. In addition, we have increased the amount we will lend to small to medium sized enterprises (SMEs) by £1bn.
“This borrowing is almost entirely linked to the bank base rate so SMEs will also see their rates reduce by the full 0.5%.”
The new fixed loan is priced to appeal to customers currently paying standard variable rates, and enables them to lock-in to a 2.99% rate until February 2011.