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TSB cuts rates for second time this week while Pepper Money reduces by 1%

Journalist: Justin Moy, Contributing Editor

ended 12. September 2024

The rate cuts continue to come, with Pepper Money reducing rates by a hefty 1% across their fixed rates this morning, The Mortgage Works easing the rates available to existing borrowers, and just a few days since their last reprice, TSB shaving up to 0.35% off rates. Newspage asked brokers why rates are falling so sharply at the moment and what this could mean for the property market. Their views are below.

13 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
Further rate cuts across the market continue to send a positive vibe around the property market at the moment. A real mixture of improvements. TSB with their second set of rate cuts this week reflecting a renewed desire for more market share, significant cuts by Pepper Money keep the specialist market competitive, and landlords benefit from the TMW cuts for existing borrowers. Plenty to cheer about.
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Ben Perks
Managing Director at Orchard Financial Advisers
Fighting talk from TSB who have used a one, two combo to knock out the competition this week. They are scrapping their way to the top of the mortgage ratings, so will anyone hit them with a counter?
Pepper Money have popped up with the spiciest cut so far. Great to see a specialist lender getting their rates as low as possible. This will provide a huge relief to borrowers with quirky requirements.
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Ken James
Director at Contractor Mortgage Services
The first cut is the deepest, but not so with TSB who clearly want another slice of the pie. We are seeing a definite shift among lenders now and buyers are reaping the rewards. This rate war has ramped up, with The Mortgage Works also hitting out to support landlords we are also seeing more BTL business starting to show shoots of recovery. This is proving to be a real shot of adrenaline to the property market and something that does not appear to be running out of steam, at least not yet.
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David Stirling
Independent Financial Advisor at Mint Wealth
TSB have come out swinging in their second round of rate cuts this week. This is a further boost for borrowers with at least a 20% deposit, but unlikely to sucker-punch other lenders at the higher loan-to-values. However, any movement south at the minute is welcome and can only push other banks into a corner, hopefully forcing them to come out fighting with further rate cuts this week.
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Imran Hussain
Director at Harmony Financial Services
TSB's latest rate cuts are welcome news for homeowners and those looking to buy a property. This continued trend of falling interest rates offers significant potential financial relief for many borrowers. As the housing market evolves, it's encouraging to see lenders responding to changing economic conditions and providing more competitive options for borrowers.
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Michelle Lawson
Director at Lawson Financial
A deluge of rate discounts coming through again this week from various lenders, which is fantastic news for borrowers. Something to warm up the industry on a cold autumn day. Right now there is some real momentum in the market and borrowers will be the winners.
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Iain Swatton
Director at Exemplar Financial Services
TSB has made headlines twice in one week by cutting rates again this morning. Clearly the fastest to react to market shifts, they’ve grabbed attention with two reductions in just a few days. And they’re not alone—other lenders are also cutting rates, making this great news for first-time buyers, home movers, and remortgage clients alike. With so many lenders lowering rates, we’re hopeful this will inspire even more people to take the plunge into the housing market.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As the interest rate rollercoaster picks up speed, a mad dash to rock-bottom rates has begun with a second rate cut by TSB. Furthermore, a whole cavalcade of mortgage providers are now joining the fray, creating a whirlwind of competitive offers sweeping across the mortgage landscape. This rate reduction spectacle, following a decline in swap rates, is throwing a lifeline to many who've been treading water in the sea of higher rates.
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Simon Bridgland
Director at Charwin Private Clients
TSB have just realised they undercooked their other rate drop this week, so have taken another stab at it, and this one's a charm. Meanwhile, The Mortgage Works have reduced their buy-to-let rates more times in the couple of months than I have fingers, so they have to be applauded for their offering. I feel it’s the best the market has by some margin. They look after both new and existing borrowers who also have a good choice of how they pay for the product. They are more or less the only good news landlords have had for a long time now. They need some soothing after taking a look at the Renters Reform Bill which was issued only yesterday.
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Darryl Dhoffer
Founder at The Mortgage Geezer
TSB have slashed interest rates for the second time in a week. SWAP rates have been largely steady this week, so you can only assume they got the first round of cuts wrong. Either way, bravo TSB. Pepper Money's specialist lending rates certainly bring them back into the mix as well. As for The Mortgage Works, again these are competitive deals for landlords. Granted their best deals have high fees, but they are certainly moving in the right direction.
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Rohit Kohli
Director at The Mortgage Stop
TSB are taking the bull by the horns this week with further rate cuts that will delight both existing and potential borrowers. Even with all the uncertainty about what the Bank of England will do next week and what impact this Labour government's Budget of doom will have in October, lenders remain positive and are leading the charge to make borrowing affordable again.
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Jack Tutton
Director at SJ Mortgages
With so many lenders making significant reductions to their rates, it is yet more evidence that market conditions are improving for mortgage holders. We have seen sweeping changes across the board from all sections of the market in the past week. This should hopefully continue given the sizeable reductions in SWAP rates and talk of another base rate cut next week.
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Elliott Culley
Director at Switch Mortgage Finance
Borrowers are aware that rates are reducing and this means mortgage lenders need to be as competitive as possible to attract business. We are approaching the last quarter of the year and there may be some lenders beihnd target, so I wouldn't be surprised to see some unfamiliar names making waves in the market.