HSBC's new 4.99 per cent mortgage offer

Commenting on HSBC's headline grabbing 4.99 per cent mortgage offer, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: "HSBC has continually looked to grab the headlines throughout the turbulence in the mortgage markets. It clearly senses an opportunity to become a much bigger fish in this sector and has looked to produce media friendly products to draw in customers.

"Its rate matcher idea was very clever, but came with hefty arrangement fees and stringent credit requirements, which meant HSBC was able to be very selective with who it accepted.

"Little has changed with its new offer. Placing big '4.99%' posters in its windows will get bodies in branches, but the reality is that the fees, again, are high. Its pre-existing 5.49 per cent deal with its smaller fees works out cheaper for every mortgage other than those between £212,000 and £250,000.

"HSBC's cunning shouldn't get the better of borrowers, whom I urge to work through the details rather than just looking at the poster in the window."