HSBC is offering its lowest ever two-year fixed rate of 1.99%.

Borrowers with a 40% deposit or equity can secure the rate for a fee of £1,999, or £1,499 for HSBC current account holders.

As with all HSBC mortgages, it is only available direct and cannot be secured through intermediaries.

“While there remains a low expectation of bank base rate increasing in the near future, it has been a week of surprises at the Bank of England and as yet we don’t know whether the new Governor will bring a change of heart within the monetary policy committee,” said Peter Dockar, HSBC head of mortgages.

“We have seen increasing numbers of customers seeking the security of a fixed rate and I expect this trend to continue. With the security of our retail deposit funding, HSBC is committed to offering competitive rates to benefit our customers.”