“It’s great to see some fresh rate reductions despite fears that they may be coming to an end following the slight reversal in swap rates.”
TSB has announced a series of rate cuts across its mortgage range, with rates now starting from 4.89%.
The lender announced: “On Tuesday 3 October, we’re making further reductions to our residential, product transfer and additional borrowing rates by up to 0.35%. With all our residential remortgage products also benefitting from a free basic valuation, together with a choice of free legal assistance, or £300 cashback, we continue to help customers borrow well.”
The largest reductions are to TSB’s product transfer range, with two and five-year fixed rates reducing by up to 0.35%.
As part of the changes, two-year fixed rate purchase and remortgage products have reduced by up to 0.25% and five-year rates by up to 0.30%.
Newspage asked brokers for their views.
Stephen Perkins, managing director at Yellow Brick Mortgages, said: “It’s great to see some fresh rate reductions despite fears that they may be coming to an end following the slight reversal in swap rates. This highlights very clearly the fact that lenders still have money to lend and are fighting with each other over a smaller number of borrowers. Right now, market share is an absolute focus of the big lenders.”
Steven Hargreaves, mortgage adviser at The Mortgage Co, commented: “This is another sign that lenders are all having to cut their rates and margins to secure their percentage of the mortgage market and attract business. It’s great news for us brokers and even better news for anyone needing a mortgage, as the reductions apply to buyers, remortgagors and product transfers.”
Gary Bush, financial adviser at MortgageShop.com, added: “Any mortgage rate range that starts with a 4 is now very much welcomed. It’s great to see the UK lender mortgage rate war rumble on.”
Charles Breen, director of Montgomery Financial, suggested this may signal that lenders believe the worst is now behind us: “All these ongoing rate reductions by lenders suggest they have confidence that the worst is over and we have weathered the storm.”
