HSBC announces it will pass on interest rate cuts

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HSBC announces it will pass on interest rate cuts

Thu 8th Jan 2009

HSBC has announced that it will pass on the Bank of England's latest cut in the base rate of interest to its mortgage customers.

The bank said its standard variable rate will fall to 3.94 per cent and its tracker mortgages will fall in line with the reduction in the base rate.

HSBC also announced that small and medium enterprise (SME) customers with floating borrowing, who make up about 97 per cent of the banks business borrowers, would also benefit from the full interest rate cut.

HSBC UK managing director Paul Thurston said: "HSBC is open for business. [It] has already pledged to lend up to £15 billion in mortgages this year, double what we lent in 2007 and with this latest cut we are doing everything in our power to ensure mortgages remain affordable."

The Bank of England announced a 0.5 per cent cut, taking the base rate to a historic low of 1.5 per cent.

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