HSBC announces mortgage rate cut

HSBC will pass on last week’s base rate cut to the ‘vast majority’ of its mortgage customers, the bank has revealed.

Ninety five percent of mortgage customers on variable packages will benefit from the full 0.5% rate cut, HSBC said.

In addition, the bank’s small and medium sized business customers will benefit from the cut to base rates.

HSBC UK’s head of retail products, Andy Mielczarek, said: “HSBC is very much open for business, we have £15 billion allocated for mortgage lending in 2009 and we will be passing on the full base rate decrease to the vast majority of our customers.”

Other lenders to pass on the full base rate cut to mortgage holders include Barclays and Nationwide.

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