HSBC has announced that it is to cut the rate on its Fee-Free lifetime tracker mortgage product.

The bank says it is making the move in response to receiving a seal of approval from What Mortgage?

It is the first-time that the mortgage consumer magazine has ever given out such an accolade.

HSBC has cut the rate on the mortgage by 0.1 per cent, taking it down to 6.44 per cent.

On a 25-year mortgage for £100,000, the cut will allow the borrower to save around £2,500 on their repayments.

Rob Chesters, HSBC head of mortgages, said: "We are delighted our fee-free lifetime tracker mortgage has received What Mortgage's first ever seal of approval."

He added that the rate was cut to "celebrate" the award and that this should make it "even more attractive to home buyers".

Mortgage borrowers with tracker products may have been relieved by the Bank of England's decision to freeze interest rates earlier this month.

And many analysts are predicting that the period of rate rises is coming to end, as there are signs that inflation is coming back under control.

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