HSBC has launched a range of discount deals, including a 4.99% two-year discount loan that is the only two-year sub-5% discount mortgage on the market.

According to HSBC, the mortgage has a £2,499 fee, maximum LTV of 80 % and borrowing limit of £250,000. Additionally, customers seeking to borrow up to £500,000, HSBC can be offered a choice of two-year discount mortgages at 5.49% with a £999 fee, and 5.69% with a £249 fee. The lender will also continue to offer its special Remortgage Tracker at 5.79% with a £599 booking fee.

At the same time, HSBC is continuing to offer homeowners the option of a two-year fixed rate, though from 30 June the rate will increase by 0.45% to 6.74% (with a £799 booking fee). HSBC's three-year, five-year and 10-year fixed rate mortgages will increase by 0.3% to 6.59%.

Andy Mielczarek, HSBC's head of lending, said: “Our new discount deals offer substantial discounts on our standard variable rate of 6.25%, which itself is the best on the high street. Variable rate mortgages are starting to look attractive against fixed rate deals, which are now carrying higher fees.

“These are uncertain times and a lot of people coming off fixed rate deals will be looking to lock their repayments in for a few more years. But homebuyers really need to think about whether the peace of mind of a fixed rate is currently worth an effective 1 per cent increase in overall costs that a high booking fee can represent.”