The bank is now offering two fixed-rate mortgages to first-time buyers and other borrowers up to a maximum of 95% loan to value (LTV).

HSBC has launched a two-year fixed rate charged at 4.79% and a five-year fixed at 4.99%.

Both Help to Buy 2 deals come with a £99 booking fee.

The bank will demand a minimum deposit of £10,000, and will ‘stress test’ applicant’s ability to repay the mortgages at much higher rates of interest, in order to ensure that they can keep paying as and when interest rates rise.

Initially these deals will only be available to borrowers looking to buy a property, but the bank says it will consider offering them to remortgagors in the future.

Like all HSBC’s mortgages the Help to Buy deals are only available via branches, and not through mortgage brokers.

Brendan Cook, head of retail banking and wealth management for HSBC UK said:

“We want to support our customers, whether they are buying their first home or moving up the housing ladder. In order to protect them, we want to ensure they can afford their repayments when interest rates rise.”