Three-year purchase loans of between 80 and 85 per cent loan to value (LTV) will see their rates reduced by 0.05 per cent, with the same sized cut taking place on ten-year fixed rate purchase deals for 60-75 per cent LTV.
As a result rates on three-year purchase deals start at 1.84 per cent, while ten-year deals begin at 2.34 per cent.
On the remortgage side, three-year fixed rates of up to 85 per cent LTV will have their rates reduced by 0.10 per cent. Rates now begin at 1.64 per cent.
Ten-year fixed rate remortgage deals for between 60-75 per cent LTV will be reduced by 0.05 per cent, with rates starting at 2.34 per cent.
Nick Smith, head of mortgages at TSB, said the lender was seeing more and more borrowers wanting to fix their deals for a longer period.
He continued: “Today’s reduction in interest rates will not only be welcome news financially, but it will also offer peace of mind to those wanting certainty of payments for the next few years.”