HSBC has joined other lenders offering new products and launched a 1.99% mortgage on a two-year discount rate – available to customers with a deposit of 40%.

Other mortgages within its new range include a two-year discount mortgage for customers with at least a 25% deposit at an interest rate of 2.49%.

HSBC has pledged to double its 2007 level of mortgage lending this year and has made £15bn available to customers. It was the largest net mortgage lender in the UK in the first half of 2009, with £4.2bn in new lending.

However, it seems that the Lenders are still cautious & only lending to customers with large deposits.