"Full marks to TSB" for cutting rates twice in a week as lenders seek to ignite "subdued" market

Brokers have applauded TSB for cutting rates twice in the same week, saying it shows lenders are desperately trying to get the market moving as demand ebbs away in the run-up to the Budget.

One broker, Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, said "the market is subdued whilst the nation holds its breath ahead of the Budget but TSB is taking matters into its own hands.”

The cuts by TSB include up to 0.2% off 2-year fixed rate purchase, shared ownership and shared equity house purchase mortgages and up to 0.1% off 2-year fixed rate remortgages.

Product transfer and additional borrowing on 2-year fixed rates between 60% and 75% loan-to-value are also reducing by 0.05%.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, applauded the lender and urged borrowers to take note: "This doesn't happen often, so full marks to TSB for cutting more of their fixed rate deals this week. This appears to be a combination of Swap rate improvements and also lenders doing what they can to stimulate activity given the slowdown in the property market as a whole.

“Now is definitely the right time to look at securing that next mortgage deal before the Budget, with the safety of being able to make further changes if rates continue to tumble.”

Harry Goodliffe, Director at HTG Mortgages, said TSB clearly means business.

He added: “Two rate cuts in a week from a major lender isn’t something you see very often. It’s a proper statement of intent and a sign they’re chasing market share. It’s great news for borrowers and exactly the kind of spark the market needs right now. Let’s hope the other big lenders follow suit.”

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said: "To see a major high street lender cut rates twice in a week is welcome news for borrowers. Budget uncertainty has dampened demand for property and lenders are feeling it.

“Though the direction of travel for rates remains uncertain, with inflation still far above the target, lenders are doing their best to get the market moving.”

Babek Ismayil, CEO at homebuying platform OneDome, added: "Two lots of rates cuts from TSB in a week suggests lenders are feeling boxed in by the Budget. Demand has ebbed away as borrowers batten down the hatches ahead of next month's fiscal announcement and lenders need business.

“They're trying to light a fire under demand by bringing rates down, even if that means their margins take a hit. Either way, it's good news for borrowers and now could represent a good window of opportunity.”

Elliott Culley, Director at Hayling Island-based Switch Mortgage Finance, said: “It's good to see lenders being more bold before the autumn Budget comes into effect.”