HSBC has shaken up the mortgage market with the launch of a two-year fixed rate product at 1.19%.

The deal is one of four new mortgages available from the high street lender from today, Monday 2 February.

However, fees of £1,499 apply and the product is only open to borrowers with a 40% deposit.

For those with smaller deposits a 2.38% two-year discount rate has been launched at 90% loan-to-value, also with a £1,499 fee.

The other new products launched today are both available at 95% LTV, a 4.39% rate for those fixing for two years with a five-year equivalent available at 4.89%. A £99 product fee applies in both cases.

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Additionally, HSBC is cutting the headline rate of all its existing products at 80% and 90% loan-to-value.