HSBC drops tracker rates

Friday, 06 February 2009 01:26

HSBC has pledged to cut rates on existing tracker mortgages following the Bank of England base rate cut.

Tracker deals will match the central banks 0.5 per cent cut.

The HSBC standard variable rate - which affects around five per cent of customers - remains under review.

The lender has also cut the rates on new standard fixed-rate mortgages by up to 0.4 per cent.

It is offering a two-year fix at 4.44 per cent, a three-year fix at 4.74 per cent and a five-year fix at 4.99 per cent. All deals have a maximum loan-to-value (LTV) level of 75 per cent and have booking fees of £599.

It also has a number of discount and tracker remortgage deals with starting rates under three per cent.

Andy Mielczarek, head of retail products at HSBC, said: "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 £1billion. This borrowing is almost entirely linked to the bank base rate so SMEs will also see their rates reduce by the full 0.5 per cent."

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