The 0.99% two-year tracker, comes with a £999 fee, or £749 for existing HSBC Premier or Advance customers, and no early repayment charge.
The rate cuts are across the full LTV range from 60% to 90% LTV and the bank’s two-year and five-year fixed rate fee free mortgages.
Tracie Pearce (pictured), HSBC UK’s head of mortgages, said: “We were the first to break the 1% mark last year with our two-year fixed rate mortgage, and we are now going sub 1% with our two- year tracker mortgage.
“For those looking to purchase now, these rates offer great value, making home buying or remortgaging more affordable.”
Tesco Bank launched a 60% LTV variable loan on the 6 June at 0.98% with a fee of £1,495 which is the lowest-ever variable rate for the market.
HSBC also emerged top of a global banking survey, dictated by capitalisation and its move into the intermediary market meant partnerships with 19 distributors by May with plans to have the whole of the Appointed Representative market by year-end.
Pearce confirmed exclusively to Mortgage Solutions its new broker website platform is due to launch in Q4.