Best fixed mortgage rates drop below 1.5pc as HSBC cuts rates These rates are available to borrowers with a 40pc deposit or equity. The fall is down from 0.2pc from the previous best buys of around 1.7pc. A fall of a fifth of a percentage point may seem low, but it equates to a £50 decrease in monthly repayments - or £600 a year - on an interest-only basis. On a repayment loan the reduction would be £30 a month, assuming you borrowed £300,000, according to Anderson Harris, the broker. Rachel Springall, finance expert at Moneyfacts.co.uk said: "The 1.49pc two-year fixed is the lowest rate in the market. First-time buyers will be pleased to see a market leading rate still on offer if they have a 10pc deposit and enough money to cover mortgage fees. HSBC was the winner in the Best First Time Buyer Mortgage Provider category at the Moneyfacts Awards 2013. It is also introducing two new five year fixed rates at 60pc loan-to-value. They are 2.59pc five year fixed with a £1,999 fee and 2.99pc five year fixed with a £99 fee. Peter Dockar, head of mortgages at HSBC, said: "We have seen increasing confidence in the market and with mortgage rates at an all-time low now is a good time for borrowers to review their existing rates." Customers remortgaging with HSBC will also get £500 cashback on its standard and fee-free mortgage range. David Hollingworth, of mortgage broker London & Country, said: "The rate is eye-catching to say the least and undercuts the current lowest rate from Chelsea BS by a margin. Of course mortgage borrowers are much more aware these days that there is more to a mortgage deal than rate alone. This deal is open to those that have at least 40pc to put down and also carries a substantial fee of £1,999. That fee will have a major bearing on the overall cost of the deal and will certainly skew it in favour of larger loans. For example, in simple terms it adds an extra 1pc per annum on a £100,000 mortgage. Tables: Today's best mortgage rates (Moneysupermarket) Example 1: £150,000 mortgage over 25 years HSBC at 1.49pc Monthly payment = £599.20 Total over two years = £14,380.80 Fee = £1,999 Total = £16,379.80 Norwich & Peterborough at 1.99pc Monthly payment = £635.05 Total over 2 years = £15,241.20 Fee = £295 Total = £15,536.20 Example 2: On a £500k mortgage (the HSBC maximum) Monthly payment = £1,997.33 Total over 2 years = £47,935.92 Total = £49,934.92 Monthly payment = £2,116.84 Total over 2 years = £50,804.16 Total = £51,099.16 Have a question about personal finance? Put it to our panel of experts at money@telegraph.co.uk