TSB and HSBC are the latest lenders to cut their mortgage rates, joining a fierce battle to offer the lowest deals in years.

TSB is making its biggest cuts for borrowers with smaller deposits – that’s great news if you’ve only got 10-20% to put down. Here’s a taste of the savings you could snag from tomorrow:

• Five-year fixes: Rates slashed by up to 0.25 percentage points for those buying a home with an 80-90% loan-to-value (LTV)
• Three-year fixes: Enjoy reductions of up to 0.24 percentage points at 60-75% and 85-90% LTV
• Two-year fixes: Rates are tumbling by up to 0.2 percentage points

HSBC is also joining the price war, cutting rates across a range of residential and buy-to-let mortgages. While the bank is staying tight-lipped about exactly how much rates will fall, experts predict big savings.

This all comes after a scramble amongst big lenders to offer eye-catching sub-4% five-year fixed rates – but these deals have mostly been limited to borrowers with hefty deposits (40% or more).

Nicholas Mendes, a mortgage expert at John Charcol, says HSBC’s move is no surprise: “Given the competitive nature of the mortgage market, it was only a matter of time before HSBC adjusted its rates in response to the broader market trends.”

What does this mean for you? This latest rate war is fantastic news if you’re in the market for a mortgage. With lenders vying for your business, you’re in a strong position to bag a bargain. Make sure you compare deals from different lenders to find the best rate for you.