The changes come into force from today. On the residential side, TSB has introduced three-year first-time buyer and house purchase products at 90 to 95 per cent loan to value (LTV). Pricing starts from 5.74 per cent. The lender has cut rates on three-year fixed first-time buyer and house purchase by up to 0.35 per cent. Pricing begins from 4.79 per cent.
TSB has lowered its two-year fixed remortgage up to 75 per cent LTV rates by up to 0.05 per cent.
Within its product transfer and additional borrowing range, residential two-year fixed rates up to 75 per cent LTV by up to 0.1 per cent.
Paragon adds no-fee deals
Paragon has brought out five-year fixed rate buy-to-let mortgages with no product fees, with pricing beginning from 5.8 per cent and £750 cashback.
The deals are available up to 70 per cent loan to value (LTV), with pricing beginning from 5.8 per cent for single self-contained (SSC) properties with EPC rating of A, B or C.
This goes up by five basis points for properties with lower EPC ratings.
For customers looking to buy or remortgage houses in multiple occupation (HMO) and multi-unit blocks rates begin from 6.05 per cent.
Interest coverage ratios (ICR) are calculated in line with initial rates and all products are available to landlord applying through limited company structures or in personal name in England, Scotland and Wales.
Louisa Sedgwick, commercial director at Paragon Bank, said: “While we know that initial rates starting at 5.80 per cent won’t work for all borrowers, charging no product fees can make the mortgages we’ve launched today really appealing for others, particularly those buying or remortgaging higher value properties.
“We’ve also introduced £750 cashback on selected products which could be used towards legal costs, for example.”
She added: “We are delighted to see swap rates continuing to fall this week, highlighting how an element of stability is returning to the mortgage market, enabling us to adjust our range making our products more attractive to landlords.”
Last week, Mortgage Solutions reports that Paragon had made profits of £278m but its mortgage lending nudged down to £1.8bn.
