HSBC launched its lowest ever mortgage rate of 2.99 per cent yesterday, following the latest decision by the Bank of England to cut the base rate to 1.5 per cent.

The rate of below three per cent is available on its Premier 2-year discount mortgage, but is only available to customers with a loan-to-value ratio of 60 per cent, meaning customers must have equity or a deposit worth 40 per cent of the property’s value.

The rate will be available from February 6, and is launched alongside a new range of tracker mortgage products including a lifetime tracker with a loan to value ration of 75 per cent.

Commenting on the announcement, Martijn van der Heijden, head of mortgages at HSBC Bank said: “As the Bank of England base rate comes down, we have the ability to increase even further the affordability of our mortgages, many of which were already the cheapest to be found on the high street.

“Together with our pledge to double 2007 mortgage lending to £15billion this year, we hope that this new range will demonstrate that those who want a mortgage can get one, and at a sensible rate.”

Other lenders to launch reduced mortgage rates since the latest base rate cut include Abbey mortgages and Alliance & Leicester mortgages.

Meanwhile, Bradford & Bingley mortgages are offering existing mortgage customers the chance to switch to another lender mid-contract by waiving early redemption charges.

The buy to let mortgage specialist was nationalised back in September and is no longer taking on new mortgage business. And, as it tries to rid itself of some debt, B&B; is allowing customers to leave their mortgage without charge – which can be around £3,000.

On its website Bradford & Bingley says the deal may be of interest to people on high rates or people looking to sell their property, although experts are warning that customers are unlikely to find a better rate because B&B; offered such good buy to let mortgage deals.

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