In a move that will be music to the ears of homebuyers, TSB is slashing its mortgage rates by up to 0.20% starting tomorrow (26 July).

This means cheaper borrowing for those looking to get on the property ladder or remortgage their existing homes.

Here’s a breakdown of the changes:

• First-time buyers and those moving home with a deposit of at least 25% (75% loan-to-value) can enjoy rate cuts of up to 0.10% on two, three and five-year fixed-rate mortgages.
• Existing homeowners looking to remortgage with a 25% deposit (75% LTV) will see the biggest reductions, with rates cut by up to 0.20% on two, three and five-year fixed deals.
• Borrowers looking to switch to a new deal with TSB (product transfers) or borrow more against their property (additional borrowing) will also benefit from rate reductions. These cuts range from 0.10% to 0.20% across a range of two, three and five-year fixed rate deals.

Experts are saying…

Nicholas Mendes, a mortgage expert, commented, “This is fantastic news for borrowers! TSB is making homeownership more accessible with these rate cuts across the board. This shows how competitive the mortgage market is right now and suggests lenders are confident that interest rates will soon start to fall.”

Why the rate cuts?

TSB’s decision to cut rates follows a recent announcement of their half-year profits, which were down 24.5% compared to last year. The bank attributed this to lower profits on mortgages due to tough competition in the market. They also pointed to the increasing interest rates they’re now paying to savers, which impacts their overall profitability.

Despite the challenging market, TSB’s lending to customers is up 1.1% since December, indicating a potential rise in mortgage applications.

What does this mean for you?

If you are thinking about buying a home or remortgaging, now could be a good time to speak to a mortgage broker about securing a competitive deal. With lenders like TSB cutting rates, there could be significant savings to be made.