The reductions will apply from 8 September.
Within its residential offering, rates on its two-year fixes for purchase and remortgage will be cut by up to 0.2 per cent on products up to 75 per cent loan to value (LTV).
Its two and five-year fixed buy-to-let rates for purchase and remortgage will receive the largest reductions and be lowered by up to 0.5 per cent.
The two and five-year fixed buy-to-let product transfer deals will also be cut by up to 0.5 per cent, as will the two and five-year fixed additional borrowing options.
Additionally, TSB will launch fee-free remortgages for buy-to-let borrowers, fixed for either two or five years, with rates starting from 5.79 per cent.
Mortgage brokers commended TSB for its rate cuts.
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, said: “Another step in the right direction for rates that can only be seen as a positive. We’re not out of the woods yet due to the lagging effect of rising rates, however with several large lenders all following suit, this is a glimmer of hope that the worst is behind us.
“All eyes will now be on the Bank of England this month when they decide what to do with the base rate in response to the inflation data due out on the 20th. Everyone in the UK should have their fingers crossed because, like it or not, it affects us all.”
Justin Moy, managing director at EHF Mortgages, added: “TSB’s latest reprice is another sign of recovery in the mortgage market, as lenders look to grab some market share and seek to achieve their lending targets. More encouragement for borrowers, slowly but surely. Let’s hope the inflation figures due next week don’t put the brakes on.”
Natwest cuts rates
Natwest has made a second round of mortgage rate reductions, following cuts of up to 0.55 per cent earlier this week.
The changes will be effective from 8 September and apply to new and existing customer products.
For new purchase borrowers, two and five-year deals will be reduced by up to 0.18 per cent, while remortgages will be cut by as much as 0.12 per cent.
For first-time buyers, Natwest will reduce the rates on two and five-year options by as much as 0.15 per cent. Shared equity purchase mortgage rates that are fixed for two and five years will be cut by up to 0.28 per cent.
Its green purchase deals will see rate cuts of up to 0.18 per cent, while remortgage options will go down by as much as 0.12 per cent. This will apply to two and five-year options.
For existing borrowers, Natwest will cut its residential two and five-year switcher rates by up to 0.3 per cent, and remortgage alternatives will be reduced by up to 0.2 per cent.
Again, mortgage brokers welcomed the news.
Jamie Lennox, director at Dimora Mortgages, said: “The domino effect is in full swing with lenders and their rate reductions. With swap rates continuing to fall, and some positive comments from the governor of the Bank of England, we could see more and more lenders follow suit in the days to come.
“Consumers still need to be cautious about holding off too long to secure a rate as the outlook can change with a flick of a switch.”
Craig Fish, director at Lodestone Mortgages and Protection, added: “Dare we say the words, ‘rate war’? Another lender reducing rates, especially considering it’s the second time this week for this lender, is certainly a sign that one may be on the horizon as lenders realise they are a long way short of their lending targets for the year.
“Expect more of the same over the next couple of weeks in light of the positive comments from Andrew Bailey yesterday.”
