The sub-one per cent deals are two-year tracker products at 60 per cent loan to value (LTV) which have seen a rate reduction of 0.15 per cent. They are now priced at 0.99 per cent, which is 0.74 per cent plus the current base rate of 0.25 per cent.
These are available to standard residential existing first-time and homeowner borrowers who are remortgaging, switching and taking out further advances.
The products have a £999 fee.
Also at 60 per cent LTV, its five-year fixed remortgage with a £999 fee has been reduced by 0.10 per cent to 1.44 per cent and its five-year fixed fee-free remortgage has been reduced by the same amount to 1.59 per cent.
At 85 per cent LTV, its five-year fixed purchase and first-time buyer product with a £999 fee has been reduced by 0.10 per cent to 1.79 per cent, and the 90 per cent LTV equivalent has received a similar cut to 2.19 per cent.
Reductions of up to 0.10 per cent have also been made to its buy-to-let range.
Michelle Andrews, HSBC UK’s head of buying a home, said: “We are following rate reductions just before Christmas with a further rate refresh, where we are reducing our fixed rate mortgages by up to 0.1 per cent, whilst our more flexible tracker deals are also being reduced across the range.
“By providing a sub-one per cent option for customers with a higher amount of equity and reducing higher LTV rates for house purchases, we are offering those wishing to refinance their existing home, or seeking their first or next move on the property ladder, access to highly competitive rates with the option to choose between more flexible deals or secure longer term payment security.”
Yorkshire Building Society maintains SVR
Yorkshire Building Society has decided to hold its standard variable rate (SVR) despite other lenders increasing the rate in light of the base rate change.
Its SVR is currently 4.49 per cent.
The mutual will also add 0.10 per cent to its variable rate savings accounts.
Chris Irwin, director of savings at Yorkshire Building Society, said: “It has been a tough few years for savers so we’re delighted to be able increase our savings products at the same time as protecting our borrowers from the increase.
“With no external shareholders to satisfy we have protected savers as far as possible during the extended period of a record low bank rate, maintaining an average interest rate on our accounts which has been consistently higher than the market average.”
Irwin added: “It is also pleasing that our robust financial position allows us to protect repayments for some of our borrowers by not increasing our SVR.”
All changes will come into force on 1 February.