Copy article

TSB cuts some rates, increases others: "Another week, another set of rate cuts"

ended 30. September 2024

TSB has this morning announced that, from Tuesday 1 October, it is making the following rate changes to its Residential, Buy to Let, Product Transfer and Additional Borrowing ranges. Newspage asked experts for their views, below.

Residential

We’re increasing rates on:

  • 5 Year Fixed First Time Buyer and Home Mover 0-85% LTV, by up to 0.15%

We’re reducing rates on:

  • 3 Year Fixed First Time Buyer and Home Mover 90-95% LTV, by 0.10%

Buy to Let

We’re reducing rates on:

  • 2 and 5 Year Fixed House Purchase and Remortgage, by up to 0.15%

Product Transfer

We’re reducing rates on:

  • Buy to Let 2 and 5 Year Fixed, by up to 0.15%

Additional Borrowing 

We’re reducing rates on:

  • Buy to Let 2 and 5 Year Fixed, by up to 0.15%

7 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Andrew Montlake
Managing Director at Coreco
Another week, another set of rate cuts. Don't read too much into the rate increases, as they're likely to be service-related. The markets are expecting more cuts from the Bank of England in the months ahead and this is fuelling the ongoing fight among lenders for the mortgage top spot.
Star Quote
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
The slight increase in 5-year fixed rate first-time buyer and home mover rates up to 85% LTV feels like a move to improve service levels more than anything. With a little reduction on the higher loan to value ranges it's another positive for first-time buyers who are trying to avoid the stamp duty precipice next year.
Star Quote
Copy

Editor
Michelle Lawson
Director at Lawson Financial
More rate reductions but it's interesting to see TSB buck the trend with a rise on their 5-year fixed rate for both homemovers and first-time buyers. However, you suspect this is service-related, namely them managing their inflows. As this morning's Bank of England data showed, mortgage demand is rising and lenders have to sometimes increase rates on popular products to maintain their service standards.
Star Quote
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
The rate cuts just keep on coming. Lenders are very keen to keep the applications flowing and to hit their year-end lending targets and are happy to reduce their margins in the process. More great news for borrowers and, no doubt, TSB's competitors will make their moves shortly. Whilst TSB has increased one of its 5-year fixed rate first-time buyer options, this is likely because it was attracting too many enquiries in that area of their product offering.
Copy

Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
In a move that has raised eyebrows for borrowers, TSB has increased its 5-year fixed rates, swimming against the tide of broader market reductions. This contrarian move underscores the complex dynamics currently at play, where short-term volatility is becoming increasingly pronounced. While the rationale behind this increase may be service related, it does provide an insight into the dynamic nature of mortgage rates currently. The BoE's decision to maintain the base rate at 5% has created a more cautious atmosphere for lenders, which could contribute to short-term mortgage rate unpredictability. This is due to lenders' heavy reliance on swap rates for pricing fixed-rate mortgages, meaning that rapid movements in these rates can precipitate sudden changes in mortgage offerings. Although, the long-term trajectory for mortgage rates appears to be downward, this is likely to be interspersed with periods of volatility and uncertainty, so borrowers need to remain vigilant and adaptable.
Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The recent rate war between mortgage lenders, including TSB’s mix of increases and cuts, looks promising but don’t get too comfortable. As lending picks up, banks will be less likely to lower rates further to win your business. These lower rates could be short-lived, so buyers need to act fast and smart. Don’t assume this trend will last, evaluate your options carefully and lock in the best deal while you can. The rates cuts may not last.
Copy

Editor
Simon Bridgland
Director at Charwin Private Clients
As we are told when something slightly nasty has happend, 'move along please, nothing to see here'. I dont feel this is anything to cause alarm, it is likely an adjustment to stem the flow of applications, lenders although wanting to lend money, dont want to do it at the detriment of service levels, also if funds have been exhausted for a particular product then they will look to make other products more attractive to shift the funds they have available.