From tomorrow, rates will begin at 4.89 per cent.
The bank will make reductions across its two and five-year fixed purchase and remortgage products up to 90 per cent loan to value (LTV), two, three and five-year fixed product transfer rates and select two, three and five-year fixed additional borrowing options.
‘The worst is over’
TSB is the latest lender to bring rates below five per cent and the reductions were well received by mortgage advisers.
Charles Breen, founder and director at Montgomery Financial, said was “a matter of time” before TSB followed suit with its competitors.
He added: “The battle for market share is getting scrappy, but it’s a win-win for homeowners across the country. All these ongoing rate reductions by lenders suggest they have confidence that the worst is over and we have weathered the storm.”
Stephen Perkins, managing director at Yellow Brick Mortgages, said: “It’s great to see some fresh rate reductions despite fears that they may be coming to an end following the slight reversal in swap rates. This highlights very clearly the fact that lenders still have money to lend and are fighting with each other over a smaller number of borrowers.
“Right now, market share is an absolute focus of the big lenders.”
