HSBC passes on UK base rate cut in full

HSBC will pass on today's cut in the Bank of England Base rate to all mortgage and commercial borrowers.

The bank's variable mortgage rate will fall to 3.94 per cent and all Tracker mortgages - including the Tracker currently on sale - will be cut in-line with the Base Rate change.

Small and Medium-sized companies with floating-rate borrowing - around 97 per cent of HSBC's SME borrowers - will also benefit from the rate cut in full.

HSBC UK managing director Paul Thurston said: "The key issues for homeowners and businesses are availability of finance and affordability. HSBC has already pledged to lend up to £15 billion in mortgages this year, double what we lent in 2007 and with this latest cut we are doing everything in our power to ensure mortgages remain affordable.

"Likewise, small and medium-sized businesses need to know that they can access appropriate finance if they need it and that it will be sensibly priced. HSBC has increased the amount it will lend to these companies by £1.5 billion for 2009 and we continue to pass on rate cuts in full to existing customers.

"HSBC is open for business."

Research released last week from Mform, the mortgage information service, showed HSBC was the most competitive mortgage lender in 2008. HSBC's mortgages appeared as ‘Best Buys' more often than any other lender. In addition, Defaqto named First Direct (part of the HSBC Group) and HSBC as first and third respectively for having the lowest standard variable rates during 2008.

HSBC continues to provide a range of mortgages to UK homeowners, including the bank's best buy lifetime tracker mortgage, charging 1.95 per cent over the Bank of England base rate.