HSBC is launching the UK's first ever five-year fixed charging less than 2% from today.
The mortgage charges 1.99% to 60% LTV and has a booking fee of £1,499.
HSBC is also launching a two-year fix at 1.24%, and will continues to offer its two-year discount rate at 0.99%.
Both are available at 60% LTV with a £1,499 fee.
Tracie Pearce, head of mortgages at HSBC, said: "We are committed to helping customers take their first step onto, or move up, the property ladder.
"With mortgage rates lower than they've ever been before, we're proud to introduce the lowest ever five-year fixed rate.
"We're also offering £1,000 cash back to homebuyers and have refreshed our mortgage range to ensure that homeowners with a smaller deposit have access to our historically low mortgage rates."
Charlotte Nelson at Moneyfacts said: "This 1.99% deal is the first five-year fixed rate mortgage to be launched below 2% and is the lowest on record that Moneyfacts.co.uk has seen.
"This deal is likely to be a popular choice for any borrower with the required 40% deposit, and will make a cost-effective option over the longer term."
HSBC is also reinforcing its commitment to help first time buyers and movers by offering £1,000 cash back with its new Homebuyer Special range.
Advance and Premier customers will receive £1,500 cash back. It is also available on all fixed rates on our 95% LTV Help to Buy range.
Homebuyer Special range rates:
80% LTV 3 Year Fixed - 2.99% with £199 fee
85% LTV 3 Year Fixed - 3.29% with £199 fee
90% LTV 3 Year Fixed - 3.89% with £199 fee
Help to Buy range:
95% LTV 2 Year Fixed - 4.39% with £199 fee
95% LTV 3 Year Fixed - 4.59% with £199 fee
95% LTV 5 Year Fixed - 4.89% with £199 fee
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