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"Hats off TSB" as lender announces rate cuts of up to 0.85%

ended 31. January 2024

TSB has just announced that, from Thursday 1 February, it is making significant improvements to its Residential range with rate reductions up to 0.85%. New rates include 5 Year Fixed First Time Buyer and Home Mover, 90-95% LTV, starting at 4.99% with £0 product fee, a free basic valuation and £500 cashback. Newspage asked broker for their views, bottom.

8 responses from the Newspage community

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Rohit Kohli
Director at The Mortgage Stop
In a week when everyone is waiting on Threadneedle Street, it's good to see major lenders like TSB continue to drive borrowing costs down for those looking to purchase. It underpins the premise that lenders want to lend and are doing what they can to secure business. It should be noted though that TSB are yet another lender this week that's starting to create a significant price differential between its purchase products and those looking to remortgage, which is a worring sign to the millions coming off their ultra-low fixed rate this year.
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Emma Sadler
Senior Mortgage Broker at JB Mortgages
Further positive news from a lender who I have always found to be easy to deal with. The outlook so far this year, across the whole mortgage market, is great. Lenders seem to be taking an objective view when reviewing their products and this is supporting the overall goal of helping consumers to get a foot on the property ladder.
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Robert Timm
Managing Director at Sunland Mortgages
With the news of Barclays increasing a portion of their purchase and remortgage range yesterday, it's welcome to see another well known lender continue on the path of rate reductions. TSB are rarely at the head of the tables when it comes to having the lowest rates in the market, but sub-5% rates at the high loan-to-value range with no fee are extremely welcome. Hats off TSB.
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Justin Moy
Managing Director at EHF Mortgages
TSB are following many other lenders with enhanced rates for homebuyers, not for remortgages. There is a definite shift of appetite among lenders who are concentrating their efforts on the property market, whilst existing borrowers need to shop around a bit further. Homebuyers will love it, but remortgagors may feel short-changed.
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Ben Perks
Managing Director at Orchard Financial Advisers
The last few emails I've had from lenders have seen rates going the other way, so this was a welcome read. TSB have made some modest reductions to shorter term products and the reductions improve the longer the fixed period or if it's a shared equity or ownership. With the volitility of rates at the moment, it is important to secure rates when you can as long as you are able to review and modify them at no cost. Or better yet seek advice from a qualified professional who will do this for you.
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Simon Bridgland
Director at Charwin Private Clients
The new residential rates on offer, although bringing themselves closer to other lenders offerings, still do not set the world alight. Just like its competitors, TSB are increasing the rates on their remortgage offerings to seemingly balance their exposure to risk. TSB's buy-to-let products are looking attractive as they haven't gone down the route of charging eye-watering fees compared to many others in this field. Although they are not offering free legals, they are giving away cashbacks to help remortgage clients with their costs.
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Gary Bush
Financial Adviser at MortgageShop.com
TSB cutting some of its fixed mortgage rates by up to 0.85% at a time when some lenders are increasing some of theirs is a refreshing stance to take and gives further confidence to financially struggling homeowners and prospective home buyers. To also see this lender bringing a lower rate environment to the higher loan to value consumers, at 90%-95% loan-to-value is impressive. All kinds of mortgage customers need to see lower rates at this difficult time, not just those with big deposits of sizeable equity. Well done TSB.
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Akhil Mair
Director at Our Mortgage Broker
A great start to a Wednesday with TSB's announcement of significant improvements to its residential range, including rate reductions up to 0.85%. The new rates, especially the 5-year fixed options for first-time buyers and home movers at higher LTVs starting at 4.99% with £0 product fee, a free basic valuation, and £500 cashback, offer great opportunities. It's wonderful to see TSB making strides to support buyers in achieving their homeownership dreams. More could be mentioned about certain lenders altering their criteria in recent days.