HSBC has followed the lead of other major mortgage lenders by today reducing headline rates across it's mortgage products. This has followed a recent fall in swap rates- the rate of interest on borrowing between banks.

HSBC are shaving 0.31% off its two-year fixed rate mortgage. Longer term fixed rate loans are being cut by 0.16%. The booking fee is also being cut: borrowers now have to pay from £799 to £599 on fixed rate deals.

Darren Cook, mortgage expert at moneyfscts.co.uk said: "There is a faint glimmer of hope that the fixed rate mortgage market is returning to some sort of normality. New mortgage borrowers are now finally benefiting from this, as lenders pass on a string of welcome interest rate cuts on their popular fixed rate deals."