HSBC has unveiled its lowest ever mortgage rate this morning.

Borrowers with 40% deposit or equity will be able to take advantage of a rate of 0.99% – a 2.95 percentage point discount off HSBC’s Standard Variable Rate (SVR).

The lender also continues to offer its lowest ever two-year fixed rate mortgage at 1.49%.

Both products have a £1,999 booking fee.

Peter Dockar, head of mortgages at HSBC, said: “We know how important a low monthly payment is for borrowers, and are committed to offering market leading rates.

“We’re the only bank to offer a completely paperless mortgage application and are now leading the way by offering a mortgage of less than 1%. Customers can apply for these rates online, over the phone, in branch or through a broker thanks to our new partnership with Countrywide.”