HSBC will today become the latest in a series of large mortgage lenders to trim the cost of its home loans, reducing its interest rates by up to 0.31 percentage points. In addition to cutting the cost of its fixed-rate deals – its two-year product will fall from 6.74% to 6.43% a year – HSBC said it would also reduce some of the fees it charges for the loans.

The bank, which has been one of the most aggressive players in the mortgage market, is cutting prices in response to similar reductions by lenders including Nationwide, Cheltenham & Gloucester, Abbey and Royal Bank of Scotland.

Bank of Ireland, a smaller player in the market, also announced price cuts yesterday.

The Independent