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TSB cuts rates as mortgage rate war intensifies

ended 04. January 2024

TSB has just announced a range of reductions (screengrab, bottom, for ease). 2-year fixed first-time buyer, home mover and remortgage rates are being reduced by up to 0.55% (product transfers), while residential 2-year fixed rates up to 95% LTV are being reduced by up to 0.45%. Brokers shared their views with Newspage, below.

11 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
The gloves are off. Lenders are now duking it out daily in a serious rate bout, all trying to land scoring punches. On the back of Halifax and HSBC's reductions, TSB is now making its move to continue to carve out its share of a pent-up market. This should get more and more explosive as we move through the rounds.
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Craig Fish
Director at Lodestone Mortgages
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, this is a good round of reductions from another big lender.
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Justin Moy
Managing Director at EHF Mortgages
More significant rate cutting by High Street lenders as they scamble to keep up with the HSBC announcement on Wednesday. Interesting to see that TSB have picked the shorter 2-year fixed rate 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.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
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.
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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 6 reduce rates, the rest of the market usually follows. Speak to a broker to ensure you are getting the best mortgage for your circumstances.
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Darryl Dhoffer
Founder at The Mortgage Geezer
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.
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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.
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Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
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.
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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.
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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.
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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.