HSBC - one of the few banks that did not immediately pass on the biggest rate cut in more than 50 years - is thought to be considering offering better deals to new customers buying fixed-rate home loans.

The bank, which has just under 3 per cent of the UK mortgage market, is expected to make an announcement about its plans later this week. An estimated 10 per cent of mortgagees are on SVRs, which is the interest rate a mortgage reverts to after its cheaper, fixed-rate term runs out.

Banks have come under pressure from the Government to slash their SVRs, in return for the £500billion bailout offered to the industry by the Treasury last month.

An HSBC spokesman told The Times: “SVR ... isn't linked to the cost of living as trackers are, nor does it provide the certainty of a fixed rate. The important thing for a lender to do is to ensure the appropriate availability of competitively priced, useful products ... The SVR is not a particularly useful rate and that's why we're taking our time to consider our reaction.”

HSBC, which did not take Government money to prop up its business, is thought to be avoiding announcing a decision on the rate cut ahead of a meeting today with Lord Mandelson.

The new Business Secretary will chair the first meeting of the forum established by the Government to bring together banks and small businesses to get lending flowing again.

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