From tomorrow, Friday the 8th of September, TSB will be making further reductions to its residential, buy-to-let, product transfers, and additional borrowing ranges by up to 0.50%.
In its residential range, the lender’s 2-year fixed house purchase and remortgage product at 75% LTV, will be reduced by up to 0.20%.
As for its buy-to-let offering, TSB’s 2- and 5-year fixed remortgage £0 fee products will see rates starting from 5.79%.
The lender is also reducing rates on its buy-to-let 2- and 5-year fixed house purchase and remortgage products by up to 0.50% and will reduce rates on selected product transfer deals by 0.50%.
In light of these changes, Newspage sought the views of mortgage brokers and other property professionals.
Reaction:
Jamie Lennox, director at Dimora Mortgages:
“It’s great news to see TSB come out with some chunky reductions across their product range.
“Following yesterday’s comments from the Governor of the Bank of England, Andrew Bailey, that we are near the top of the cycle, this will give huge confidence to banks and building societies that we are approaching the end of base rate rises.
“This could drive further reductions across the mortgage industry, providing huge relief for many families who are treading water to keep their finances afloat.”
Lee Gathercole, co-founder at Rebus Financial Services:
“Good news. It’s great to see another high street bank reviewing their mortgage rates and these are considerable drops, too.
“It will be interesting to see how they fare for the remainder of the month with another marginal rate rise expected in a few weeks. But very welcome news for mortgage holders and first-time buyers.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“Another step in the right direction for rates that can only be seen as a positive.
“We’re not out of the woods yet due to the lagging effect of rising rates, however with several large lenders all following suit, this is a glimmer of hope that the worst is behind us.
“All eyes will now be on the Bank of England this month when they decide what to do with the base rate in response to the inflation data due out on the 20th.
“Everyone in the UK should have their fingers crossed because, like it or not, it affects us all.”
Justin Moy, managing director at EHF Mortgages:
“TSB’s latest reprice is another sign of recovery in the mortgage market, as lenders look to grab some market share and seek to achieve their lending targets.
“More encouragement for borrowers, slowly but surely. Let’s hope the inflation figures due next week don’t put the brakes on.”
Craig Fish, director at Lodestone Mortgages & Protection:
“These rate reductions are much more newsworthy than some that we have witnessed of late and will be welcomed by brokers and borrowers alike.
“It certainly seems that the current trend is downward, let’s just hope this continues.
“These reductions will now bring TSB into line with some of the other lenders, who are all vying for business levels in their preferred market space.
“Let’s face it, though, the reductions are going to need to be bigger than this to pump some life back into the market.”
Gary Bush, financial adviser at MortgageShop.com:
“Another high street lender reducing their rates is obviously good news for consumers and we look forward to more of a rate war starting among lenders.
“New mortgage enquiry activity has been increasing in September so far and long may this continue.”
Graham Cox, founder at Self Employed Mortgage Hub:
“Rate cuts of 0.5% are great news for borrowers and show how competitive it is among lenders to drum up business.
“In addition, UK swap rates are slowly falling, and this makes wholesale funding costs for lenders less expensive. Whisper it, but there are tentative signs the worst is over.”
Ranald Mitchell, director at Charwin Private Clients:
“Great news from TSB making decent-sized reductions across their products.
“This latest reprice is a sure indicator that TSB mean business and wants to remain at the competitive edge of the rate race.
“The weekly rate reductions from high street lenders are hugely welcomed from an arguably over-priced position.
“However, all eyes are on the MPC on 21st September and, if they increase the base rate, will mortgage pricing continue to drop?”
