HSBC has launched a 2-year fixed rate mortgage at 0.99% to 65% loan-to-value with a £1,499 product fee.
The product is available for purchases and remortgages and customers can overpay 10% of the mortgage balance per year without incurring early repayment charges.
The maximum loan is £500,000.
Tracie Pearce, HSBC’s head of mortgages in the UK, said: ‘’We are constantly looking at ways in which we can deliver value to our mortgage customers and from time to time we have the opportunity to launch a rate with a difference.
“The new 0.99% two year fixed rate is not only the best in category, it is available for both purchases and remortgages up to 65% LTV and through branches, over the telephone, online or through our selected intermediary partners.
“So, for customers purchasing a new home, coming to an end of a fixed rate deal or already on a standard variable rate, this is an ideal opportunity to take advantage of a great value product with the security of knowing that payments will not increase over the next two years.”