The direct-only lender will offer the two-year fixed rate product with a fee of £1999 for borrowers with a deposit of 60%.
This product undercuts the products offered by Chelsea Building Society and Yorkshire Building Society at 1.64% and 1.66% respectively.
Other products launched by the lender include a 1.69% two-year discount with a £1499 fee and a 2.19% lifetime tracker with £1999 fee, both available up to 60% LTV.
For those with smaller deposits, the lender will also offer a 3.59% two-year fix and a 3.99% lifetime tracker with fees of £1499 and £999 respectively. Both are available up to 90% LTV.
Peter Dockar, HSBC Head of Mortgages, said: “We have seen increasing confidence in the market and with mortgage rates at an all-time low now is a good time for borrowers to review their existing rates.
“Last year we opened more doors for our customers than ever before and with the security of our retail deposit funding we are committed to continuing to offer our customers competitive rates to help them achieve their property hopes and dreams.”
