Another major lender has cut its mortgage rates today, including a best-buy for home buyers with larger deposits. 

HSBC has cut nearly all its mortgage rates, with some dropping by as much as 0.24 percentage points.

The repricing includes the introduction of more than two dozen sub-4 per cent deals, with options for both home buyers and households that need to remortgage.

HSBC’s lowest mortgage offer is exclusively for its Premier bank account customers, whether they be first-time buyers or moving home. 

They can now secure a 3.88 per cent rate on a two-year fix with a £999 fee.

The account requires customers to have an annual income of at least £100,000, or have the same amount in savings or investments with HSBC.  

For non-Premier customers purchasing a home, the cheapest deal on offer for those buying with a 40 per cent deposit or more is 3.91 per cent – also with a £999 fee. It is also a two-year fix.

This is currently the cheapest deal on the market for those circumstances, not counting restricted products like the Premier deal. 

Cuts: HSBC has lowered many mortgage rates with reductions of up to 0.24 percentage points

On a £200,000 mortgage being repaid over 25 years it would mean paying £1,046 a month.

HSBC’s changes will also benefit home buyers with smaller deposits.

Its lowest five-year fix for someone with a 10 per cent deposit is 4.5 per cent, with a £999 fee. That reduces to 4.4 per cent for Premier customers. 

Those needing to remortgage can get as low as 3.93 per cent with HSBC if they have at least 40 per cent equity in their home. Premier banking customers can get 3.9 per cent.

The rates are substantially cheaper than the market average. The average two-year fix is currently 5.21, according to Moneyfacts, while the average five-year fixed rate is 5.12 per cent. 

Landlords will also benefit from the changes today. 

HSBC’s buy-to-let rates have been reduced by up to 0.12 percentage points with sub-4 per cent options now available.

Landlords who need to remortgage can secure a 3.91 per cent rate with HSBC as long as they have at least 40 per cent equity in the property. The deal also comes with a £3,999 fee.

A buy-to-let landlord with a £200,000 interest only mortgage would be looking at monthly payments of £665, if they added the £3,999 fee to the mortgage.

‘We are firmly focused on helping people achieve their home ownership goals, from remortgaging their existing property to customers moving onto or up the property ladder,’ said Oli O’Donoghue, director of mortgages at HSBC UK.

‘There are a number of factors taken into account when setting mortgage rates and following a review we are pleased to announce rate reductions across our residential, buy-to-let and international mortgage ranges for new and existing customers, with several below 4 per cent.’

Also today, lender MPowered Mortgage has cut its three-year fixed remortgage rates. 

Those with a 40 per cent deposit can get a rate of 3.98 per cent, with a £999 fee. There is also a 4.27 per cent option without a fee. 

The deals come with £250 cashback.