TSB has become the latest high street lender to reduce its mortgage rates following moves from Halifax and HSBC.
The reductions target selected 2-year fixed residential, Product Transfer, and additional borrowing rates, with remortgage products featuring a £995 fee now starting from 4.44%.
First-time buyers will see benefits across all TSB products, which now feature a follow-on Tracker rate lower than the current Homeowner Variable Rate (HVR). This change aims to reduce the total amount payable over the life of the mortgage, providing additional support to those entering the housing market.
For 2-year fixed products catering to first-time buyers, home movers, and those seeking to remortgage, rates have been cut by up to 0.55%.
Rates on residential 2-year fixed products with 0-95% LTV are reduced by up to 0.45% for Product Transfers.
Additional Borrowing rates on residential 2-year fixed products with 0-85% LTV have also been lowered by up to 0.45%.
Reaction
Imran Hussain, director at Harmony Financial Services:
“This is amazing news as another high street lender joins the party with reduced rates. The rate war is only going to heat up as other lenders almost certainly join the party. If the big six reduce rates, the rest of the market usually follows. Speak to a broker to ensure you are getting the best mortgage for your circumstances.”
Gary Bush, financial adviser at MortgageShop.com:
“To see TSB following Halifax and HSBC in lowering their fixed mortgage rates by a good chunk today is a welcome sight and confirms that the big lenders are hunting for an increase in market share in 2024. Game on. Borrowers will have a spring in their step by the end of the week.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“TSB’s gambit has stirred the pot. Whether it triggers a stampede of first-time buyers or a standoff between seasoned borrowers, the coming months promise to be a spectacle worthy of a wildlife documentary. So grab your binoculars, and let us observe the fascinating dance of rates, predators, and prey in the ever-shifting jungle of mortgages!”
Ranald Mitchell, director at Charwin Private Clients:
“The intensifying nature of the battle for mortgage business is taking another twist with TSB focusing on the 2-year products. These have been lagging behind 5-year pricing for some time now, a complete reversal of “ordinary” pricing the market has seen over the years. Focusing on the 2-year proposition will turn up the heat on other lenders who now need to constantly re-examine their pricing. The great mortgage scramble is opening up on many fronts now.”
Justin Moy, managing director at EHF Mortgages:
“More significant rate cutting by high street lenders as they scramble to keep up with the HSBC announcement on Wednesday. Interesting to see that TSB have picked the shorter 2-year Fixed Deals only, with rates starting from a market-leading 4.44% at lower LTVs. More cuts will follow as lenders jockey for business early in the new year.”
Craig Fish, director at Lodestone Mortgages & Protection:
“This is more good news for the consumer, with a particular focus now being seen on the shorter-term 2-year fixed rates as the most popular product choice by far at the moment. Also good to see an emphasis on remortgages and higher LTV levels too. Whilst it won’t send TSB to the top of the rate charts, all in all, a good round of reductions from another big lender.”
Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:
“This is a great repost to Halifax and HSBC reducing rates earlier this week, and by a reasonable amount. We cannot help thinking TSB will be announcing further cuts either later this week or early next week to stay in line with the other lenders on other products such as 3- and 5-year fixed rates. It’s a good start to the new year, and will hopefully provide all borrowers, from first-time buyers and home movers to remortgagors with favourable rates that are coming to an end some welcome relief.”
Mike Staton, director at Staton Mortgages:
“Compared to recent announcements, this isn’t a groundbreaking product. I would say it is less of a price war and more lenders coming in line with current swap rates. I expect to see further reductions as there is still scope for reductions on a 4.44% product with a £995 fee, there are better products on the market than this TSB product at the moment.”
Amit Patel, adviser at Trinity Finance:
“2024 has certainly started with a blast as lenders have entered into a pricing war which is great news for anyone wishing to get onto the property ladder or refinance their current deal. As always it’s best to speak to an independent mortgage adviser who can search the entire market and find you the most suitable product given your personal circumstances now and your plans for the future. I expect other lenders to announce reductions in the coming days.”
Jamie Alexander, mortgage director at Alexander Southwell Mortgage Services:
“Good news for consumers as TSB joins in with rate reductions, particularly emphasizing 2-year fixed rates and showing a positive focus on remortgages and higher LTV levels. While not groundbreaking, these reductions align with current swap rates. This follows similar moves by Halifax and HSBC earlier this week. A positive start to the year for borrowers, and consulting with a broker now might secure the best mortgage in this evolving landscape.”
