HSBC has become the first lender to reduce its mortgages rates below 1.5pc – cutting typical mortgage repayments by as much as £600 a year.
The Telegraph predicted two months ago that lenders were teeing up further cuts to rates on home loans suggesting they would fall below the 1.5pc mark within months. The Funding for Lending Scheme, £80bn worth of cheap loans on offer from the Bank of England, has been tapped by many lenders, helping them to offer lower rates.
HSBC, however, has not accessed the scheme. But its very existence has pushed down wholesale borrowing costs, and also s