TSB will cut selected residential fixed-rate deals by up to 85 basis points from tomorrow (1 February), which will also see the lender launch new purchase offers.
Highlights of the firm’s reductions include:
- Two-year first-time buyer and home mover fixes, down by up to 20bps
- Three-year first-time buyer and home mover fixes, at 90% loan to value to 95% LTV, down by up to 20bps
- Five-year first-time buyer and home mover fixes, down by up to 40bps
- Five-year remortgage fixes, down by up to 55bps
- Shared ownership offers, down by up to 85bps
- Shared equity offers, down by up to 60bps
The lender will also reintroduce five-year first-time buyer and home mover fixes at 85% LTV to 90% LTV, with a £995 fee.
John Charcol head of marketing Nicholas Mendes says: “While those at the top of Best Buys have seen margins slim in recent weeks, there is still room for lenders such as TSB to make significant reductions on the product range.
“Some lenders haven’t been as quick to pass on reductions in the past few weeks, so while this is an improvement, I expect there is still more to come.
Mendes adds: “On the eve of the February Monetary Policy Committee meeting [on Thursday], while markets have overwhelmingly priced in a hold, the governor’s notes following the announcement will be the focus.
“Any sense of a hold for longer or negative comments, markets will delay pricing in any bank rate reduction, which will inevitably push swaps higher — and mortgage pricing as a result.”
