HSBC to cut standard mortgage rate by 0.25%

HSBC Bank plc announces it will reduce its HSBC variable mortgage rate by 0.25% from the 9th May 2008.

This follows the Bank of England Monetary Policy Committee's decision to decrease its base rate to 5.00%. HSBC's new rate will fall from 6.50% to 6.25%.

HSBC cut the rates on its tracker mortgages by 0.25% on 11th April 2008, immediately following the Bank of England's decision.

Last week HSBC launched its unique Rate Matcher mortgage offer, meaning that borrowers facing the shock of potentially higher repayments at the end of their fixed-rate mortgage period can match their old rate by switching to HSBC. The lowest mortgage rate the bank will match is 4.54% and loans are subject to a fee. The offer is open until 18th May.

HSBC also has a range of best buy fixed, tracker and discount mortgages available including:

5 year fixed rate mortgage at 5.39% with a £999 fee
lifetime remortgage tracker at 5.48% with a £599 fee
2 year discount mortgage at 5.43% (dropping to 5.18% from 9th May) with a fee of £999
range of fee free fixed and tracker mortgages

The HSBC variable mortgage rate is at least 0.24% lower than all of the following large high street lenders: Halifax, Nationwide, Abbey, Lloyds TSB and Natwest.