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Under the changes, effective from Monday 14 April, HSBC will match the old rate of non-HSBC borrowers coming to the end of their fixed-rate mortgage period who remortgage with the bank.

The service promises to match rates from as low as 4.54 per cent for a further two years. The product is, however, subject to affordability criteria and will only be available for a five-week period (until 18 May).

The move goes against the recent trend for lenders to pull their most competitive mortgage products and increase interest rates and loan to values (LTVs).

HSBC said it would accept applications from customers whose fixed-rate products are due to mature before 30 June 2008 and where borrowing is limited to 80 per cent LTV on a maximum loan of £250,000.

However, the bank clarified that customers with loans larger than £250,000 could also still make use of Rate Matcher and top up with another HSBC mortgage for the rest of their required funds.

A fee also applies, dependant on the interest rate and size of loan requested. However, HSBC estimates that almost three-quarters of customers will pay a fee of £999 or less.

HSBC head of mortgages Martijn Van Der Heijden said: "Many homeowners are worried about their monthly repayments going up and we can help take away that anxiety.

"Rate Matcher helps customers plan budgets over the medium term and eases the shock of seeking new borrowing when old rates expire. We're pleased to be in a position to help."

The product will not be available through brokers.