TSB has just announced it is cutting rates by up to 0.4% from tomorrow, Friday 24th May.
For residential products, TSB is reintroducing 2-year tracker first-time buyer, home mover, and remortgage products.
Rates are being reduced on several offerings: 2- and 5-year fixed first-time buyer and home mover products with 75-95% LTV will see reductions of up to 0.40%, while 3-year fixed first-time buyer and home mover products with 0-90% LTV will have rate reductions of up to 0.35%.
The 2-year fixed remortgage product with 75-90% LTV will have a rate reduction of up to 0.25%, and the 5-year fixed remortgage product with 0-90% LTV will see a reduction of up to 0.20%.
Shared ownership and shared equity products will see rate reductions of up to 0.40% and up to 0.25%, respectively. The end dates for residential products will be moved out to the end of September.
For buy-to-let products, TSB is reintroducing 2-year tracker house purchase and remortgage products.
Harps Garcha, director at Brooklyns Financial:
“Rate reductions from TSB after a major political event indicate confidence in the economic outlook despite yesterday’s higher-than-expected inflation figures.
“This move suggests that lenders are not overly concerned about the upcoming General Election and are focusing on competitive strategies to attract borrowers. It’s likely that other lenders will follow suit to remain competitive in the market.
“The reduced rates aim to stimulate demand, particularly among first-time buyers and those looking to move. It is a pity that people looking to remortgage can’t benefit from such substantial reductions, too, especially when they may be struggling with significant increases in payments.”
Michelle Lawson, director at Lawson Financial:
“TSB is first out the blocks following yesterday’s General Election announcement with some healthy cuts to its purchase products.
“Maybe the prospects of a new government are giving lenders greater confidence? It’s a shame these cuts don’t apply to their remortgage products, as many of these borrowers are struggling more.”
Craig Fish, director at Lodestone Mortgages & Protection:
“Considering yesterday was such a big day in politics, we are still seeing lenders announcing rate reductions. This sends a clear and positive message, which is more than our politicians can do, saying we support borrowers and the economic landscape is improving. Expect more lenders to follow.”
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“TSB have squashed any apprehension surrounding the election announcement yesterday. They are the first major lender to reduce rates today, which proves lenders are doing everything they can to keep the economy and the property market moving. That’s a lot more than can be said for the government.”
Simon Bridgland, broker/director at Release Freedom:
“This is a super reaction to yesterday’s general election announcement. TSB are clearly feeling good about the future, so hopefully we will see more lenders jostling for top spot in the days ahead. Let’s hope they have the back office administration to handle a potential influx of new cases as that’s often where things come unstuck.”
Riz Malik, director at R3 Mortgages:
“TSB trumps other lenders with the first post-election announcement of rate reductions. Even with the recent inflation figures coming in hotter than expected, it will be interesting to see if other lenders move downwards before Rishi’s suit is dry.”
Michelle Lawson, director at Lawson Financial:
“TSB is first out the blocks following yesterday’s General Election announcement with some healthy cuts to its purchase products. Maybe the prospects of a new government are giving lenders greater confidence. It’s a shame these cuts don’t apply to their remortgage products, as many of these borrowers are struggling more.”
Craig Fish, director at Lodestone Mortgages & Protection:
“Considering yesterday was such a big day in politics, we are still seeing lenders announcing rate reductions. This sends a clear and positive message, which is more than our politicians can do, saying we support borrowers and the economic landscape is improving. Expect more lenders to follow.”
Dariusz Karpowicz, director at Albion Financial Advice:
“I don’t think lenders and wider markets have had a chance to fully react yet, as the General Election was only announced yesterday. However, TSB’s rate cut of up to 0.4% is a very positive signal. This suggests that lenders are not overly concerned at this moment. Let’s hope the election campaign brings some positive outcomes and fosters an atmosphere for economic growth. Maybe this time, politicians will address the UK’s housing problem seriously. We can only hope for constructive change and solutions that benefit the broader economy and housing market.”
Justin Moy, managing director at EHF Mortgages:
“These are significant rate cuts from TSB, favouring the home purchase and first-time buyers but also with some benefits for those refinancing, too. It’s a marked sign of confidence in our economy, and that the election shouldn’t be a distraction for mortgage borrowers in particular. With the positive mood set by the IMF earlier in the week, we could see many lenders start to cut rates, assuming their admin teams can cope with the inevitable demand.”
Dariusz Karpowicz, director at Albion Financial Advice:
“I don’t think lenders and wider markets have had a chance to fully react yet, as the General Election was only announced yesterday. However, TSB’s rate cut of up to 0.4% is a very positive signal. This suggests that lenders are not overly concerned at this moment. Let’s hope the election campaign brings some positive outcomes and fosters an atmosphere for economic growth. Maybe this time, politicians will address the UK’s housing problem seriously. We can only hope for constructive change and solutions that benefit the broader economy and housing market.”
Tracey Dixon, owner/broker at Pure Mortgage and Protection:
“Despite recent economic data, TSB’s mortgage rate reduction is a positive sign for the housing market. This move sends a strong message of support for borrowers and suggests confidence in the improving economic landscape. It’s likely other lenders will follow suit soon. TSB’s prompt action positions them competitively, grabbing the spotlight with the first post-election rate cut announcement. We’ll be watching closely to see if other lenders follow suit before the end of the week, especially considering the recent inflation figures.”
Rohit Kohli, director at The Mortgage Stop:
“This is great news for borrowers following yesterday’s general election announcement and disappointing inflation figures. It shows that despite the uncertainty that will now inevitably be in place for the next 6 weeks, underlying confidence remains strong. These reductions are significant and could potentially save someone £60 a month on a £250k mortgage over a 30-year term. Here’s hoping other lenders look to follow suit.”
