HSBC`s relaunched minimum 2.49%, two-year Rate Matcher mortgage targets homeowners on their current lender's 2.5% standard variable rate.

The limited offer, for borrowers with a 25% deposit, extends last year`s similar promise aimed at people coming to the end of fixed-rate mortgage deals.

It is a bid to boost remortgaging activity that has plunged to half of last year's level as homeowners struggle to find a new rate to match their existing SVR.

The offer is limited to a maximum £250,000, although those with larger mortgages can still sign on and top up with a standard HSBC mortgage.

Different fees will be charged depending on the deal, ranging from a minimum of £499 to £4,699 for someone borrowing the maximum £250,000 at the lowest rate of 2.49% with a 75% LTV.

HSBC says that a typical loan of £120,000 will attract a rate of less than 3% for a fee of less than £1,000. Three-year mortgages will be charged at 3.49%, and five-year loans at 4.24%.

Once the mortgage is agreed and the fee paid, draw-down may be delayed for up to six months to avoid paying early redemption charges on the current deal.

The offer is open to all homeowners, regardless of whether they are currently on a fixed, tracker or SVR rate.

Martijn van der Heijden, HSBC's head of mortgages, said: "With the base rate at its historic low, it's definitely a case of when not if mortgage rates will rise.

"It's in the interest of the millions of homeowners enjoying exceptionally low mortgage payments to think ahead now and ask themselves by how much would rates need to rise, to seriously impact their lifestyle."

HSBC announced earlier this year that it had allocated £15 billion for mortgage lending during 2009, double the level it lent in 2007.

Around £1 billion of this money is earmarked for first-time buyers and home movers borrowing up to 90% of their property's value.

Copyright © Press Association 2009