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TSB reduces rates post-Spring Statement and inflation print

ended 27. March 2025

Following yesterday's lower than expected inflation print and Spring Statement, TSB has announced is it reducing rates on selected 2- and 5-year fixed rate buy-to-let fixed products by up to 0.2%. Are you expecting more lenders to cut rates in the days ahead or will the CPI number have no material impact on mortgage pricing given that inflation is expected to go north again? Also, what's been happening in the swaps market over the past 24 hours?

2 responses from the Newspage community

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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
TSB’s rate cuts are a positive sign, but we’re unlikely to see a wave of reductions just yet. While the lower-than-expected CPI print gave lenders some breathing room, the outlook for inflation remains uncertain, with expectations it could tick up again in the coming months. As a result, lenders may remain cautious, especially in the buy-to-let space. In the swaps market, we've seen some downward movement over the past 24 hours, reflecting the market’s initial optimism. But with long-term inflation concerns lingering, don’t expect mortgage pricing to shift dramatically unless there's a clear and sustained downward trend in data.
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Iain Swatton
Director at Exemplar Financial Services
Leeds Building Society’s rate reductions on selected 2- and 5-year mortgages are welcome news for borrowers, offering a glimmer of positivity following the widely negative reaction to yesterday’s Spring Statement. With swap rates drifting down slightly – and, crucially, not rising – it’s encouraging to see lenders responding with more competitive deals. Let’s hope this signals further rate improvements ahead.