HSBC has said it will make the most of its financial advantages over other banks to offer to match the existing rates of mortgage borrowers whose fixed-rate deals will expire this year.

The bank, which currently has a comparatively low mortgage market share, has built up its capital through deposits and therefore does not have to raise money on the markets like its rivals, who are being held back by the high interbank lending rates caused by the credit crunch.

As a result HSBC will be able to offer lower rates which its competitors may struggle to match.

Joe Garner, head of UK personal finances, told the Financial Times: "We're in an incredibly strong position while others are stepping back."

The news comes despite HSBC subsidiary First Direct recently suspending sales of popular products, a move it blamed on the administrative burden of high demand.

Figures from the Council of Mortgage Lenders showed that the share of the market occupied by fixed-rate mortgages has fallen to 52 per cent, the lowest level since March 2005.