HSBC launches sub-4% fixed rates

HSBC has introduced two new mortgage rates below 4%.

The bank has launched a Premier five-year fixed rate at 3.98% up to 60% LTV, available for first-time buyers and homemovers.

HSBC has also launched a 3.99% Premier product for remortgage customers.

The lowest two-year fix currently on offer at HSBC is at 4.16%.

The new rates come as part of widespread rate cuts of up to 0.20% across HSBC's residential and buy-to-let mortgage ranges.

Oli O’Donoghue, director of mortgages at HSBC UK, commented: “We are firmly focused on helping people achieve their home ownership goals, from remortgaging their existing property to customers moving onto or up the property ladder.

"There are a number of factors taken into account when setting mortgage rates and following a review, we are pleased to announce that our residential and buy-to-let mortgage rates for new and existing customers are coming down from today.”

Last week, Santander withdrew its new business and product transfer 3.99% five-year fixed rates, citing a recent increase in five-year market swap rates. Santander's two-year 3.99% fixed rate remains in place.