The change has eliminated some of the sub-one per cent deals the bank was offering such as the five-year fixed rates at 60 per cent loan to value (LTV) with a £995 fee.  

The purchase and remortgage deals are now priced at 1.03 per cent each, up from 0.98 per cent. 

The two-year fixed remortgage product at 60 per cent LTV with a £995 fee and £150 cashback now has a rate of 0.93 per cent. The purchase equivalent is now sat at 0.98 per cent. 

Rates now vary between 0.93 per cent and 1.48 per cent. Changes will be effective from tomorrow and brokers have until 10.30pm tonight to produce mortgage illustrations for existing deals. 

TSB makes rate cuts 

TSB has reduced rates on its residential range by up to one per cent. 

The headline reduction has been made to its fee-free five-year fixed remortgage product at 75-80 per cent LTV. This now has a rate of 2.24 per cent. 

Other significant cuts include the alternative at 60-75 per cent LTV, which has been reduced by 0.8 per cent to 1.64 per cent. 

The bank has also withdrawn and repriced its three and five-year fixed mortgages with respective early repayment charges (ERCs) of two and three years. These have fees of £995 and are available for first-time buyers, house purchase and remortgage.  

TSB has introduced 10-year fixes with ERCs for the fixed rate term and equivalents with five year ERCs. 

The bank has also launched two and five-year fixed shared ownership products for first-time buyers and home buyers at 85-90 per cent LTV. This includes a two-year fixed deal with a rate of 2.79 per cent and a five-year fixed product at 3.34 per cent. 

The two-year fixed remortgages received the largest cuts of up to 0.90 per cent, such as the fee-free 85-90 per cent LTV deal which has been reduced from 3.64 per cent to 2.74 per cent. This product offers £300 cashback. 

The £995 fee-paying alternative has been reduced by 0.80 per cent to 2.34 per cent. 

For first-time buyers getting a two-year fixed mortgage, rates now vary between 1.39 per cent for a fee-free deal up to 60 per cent LTV and 3.34 per cent for a no fee product at 90-95 per cent LTV. 

There is also the £995 fee paying mortgage at 90-95 per cent LTV which now has a rate of 2.94 per cent, down from 3.04 per cent. 

Overall, these signify reductions of up to 0.50 per cent. 

Across five-year fixes for first-time buyers, rates range from 1.79 per cent for a 75-80 per cent LTV product with a £995 fee and 3.54 per cent for a fee-free deal at 90-95 per cent LTV. 

Cuts of up to 0.60 per cent have also been made to two-year fixed product transfer deals up to 85 per cent LTV, while five-year fixes across the same tiers have fallen by up to 0.45 per cent.

For purchasers, rates for a two-year fixed up to 95 per cent LTV have been reduced by as much as 0.50 per cent, while five-year fixed offerings have been cut by as much as 0.70 per cent.

The lender has gone live on the sourcing system following a successful pilot phase, which was carried out with Fluent Mortgages.

The latest innovation from Mortgage Brain, ‘Submissions Brain’ provides advisers with the ability to carry out a host of tasks with participating mortgage lenders, all through a single login, from requesting DIPs and submitting full applications to tracking the progress of a case. The platform is free and available to all mortgage advisers through a standalone interface.

Submissions Brain was released to the full adviser market earlier this year, following a successful pilot period. It is integrated with both Sourcing Brain (formerly Mortgage Brain Anywhere), the award-winning online product sourcing solution, and Mortgage Brain’s Client Relationship Management (CRM) system The Key, meaning that advisers can pre-populate information about the case, providing substantial time saving benefits.

Emily Boyes, national account manager at TSB, said: “It’s been great partnering with Mortgage Brain and we’re delighted to go live on Submissions Brain following a successful trial. It further expands our commitment to direct connectivity to make life easier for our brokers.”

Neil Wyatt (pictured) sales and marketing director at Mortgage Brain, added: “It’s wonderful to welcome TSB onto Submissions Brain. The feedback we have received from advisers has been incredibly positive. They are already seeing a tangible improvement to their workloads, and with further lenders in the process of coming on board it’s clear that the message is spreading about the difference that Submissions Brain can make.”

Mortgage Brain had a major rebrand and website relaunch recently and also renamed its comprehensive suite of products.

On the BTL side, reductions were made to its two-year fixed rate, five-year fixed rate, 10-year fixed rate, tracker rate and remortgage products.

The largest reduction was made to its 10-year fixed rate between 60 and 75 per cent loan to value (LTV), which has fallen by 0.55 per cent to 2.29 per cent. It has a £995 fee.

Other significant reductions were made to its two-year fixed rate range with its fee-free product between 70 and 75 per cent LTV decreasing by 0.45 per cent to 2.09 per cent. Its £995 fee paying equivalent also fell by 0.45 per cent to 1.69 per cent.

In its first-time buyer range, the lender has cut two-year fixed rates between 80 per cent and 95 per cent LTV by up to 0.2 per cent.

This includes its two-year fixed rate between 80 and 85 per cent LTV which has fallen from 1.94 per cent to 1.74 per cent, along with its two-year fixed rate between 85 and 90 per cent LTV which has gone from 2.29 per cent to 2.09 per cent.

The products are subject to a £995 fee.

The lender has also cut a trio of its two-year fixed rate house purchase products by 0.2 per cent, with its two-year fixed rate between 80 and 85 per cent LTV going from 1.94 per cent to 1.74 per cent.

Coventry cuts resi rates by up to 0.1 per cent

Coventry has reduced rates on residential mortgage products between 50 per cent and 75 per cent LTV by 0.1 per cent.

Reductions have been applied to 28 products in total across the mutual’s standard residential, product transfer and further advance ranges.

Highlights of the cuts include its two-year fixed rate at 65 per cent LTV, which has been reduced from 1.29 per cent to 1.19 per cent.

The mutual’s five-year fixed rate at 75 per cent LTV has fallen from 1.55 per cent to 1.45 per cent.

Both are available for purchase or remortgage and have no product fee. The products are also subject to early repayment charges (ERCs) over the fixed rate period.

Jonathan Stinton, Coventry Building Society’s intermediary relationships head, said: “Brokers and their clients have a wide range of products currently available to them, offering a variety of choices for both rates and product features that can match more closely with the needs of borrowers.

“Our residential mortgages are now even more competitive and will appeal to a broad range of borrowers, including those whose mortgage deals are due to end in the next couple of months.”

She joins from TSB Bank where she has worked for nearly eight years, most recently as a BDM for nearly three years. She has also held roles as a bank manager, mortgage adviser and a personal banking manager.

According to the lender, the appointment is part of its strategy to build its presence across the UK.

The Tipton’s sales and marketing director Jason Newsway said: “Laura is another great addition to our business development team and she will play a significant part in growing our business in London and surrounding areas. She has a strong background in mortgage sales and supporting brokers in finding solutions for their clients.”

In the first-half of the year, the lender lent £68m in mortgage advances, which is double that for the same period last year, with chief executive Richard Newton citing strong demand for its family assist and self-build products.

Carr added: “The Tipton has been making great strides with its mortgage offering particularly in niche areas such as later life and first-time buyers through its family assist products. They also have a great team in place and exciting plans for the broker market which is a major attraction to joining the business.”

The cuts have been made to two-year fixed rate products between 85 and 95 per cent loan to value (LTV).

The rate for a two-year fixed rate mortgage at 85 and 90 per cent LTV is now 2.29 per cent with a £995 fee and 2.54 per cent with no fee.

At 90 and 95 per cent LTV, the product with a £995 fee has a rate of 3.14 per cent while the fee-free option is priced at 3.39 per cent.

At the same time, the bank has increased rates on its five-year fixed rate remortgages up to 75 per cent LTV by 0.1 per cent. These are the products with a £995 fee and five-year early repayment charge periods.

The option up to 60 per cent LTV has a rate of 1.09 per cent, with rates between 60 and 75 per cent LTV pegged at 1.29 per cent.

The rate changes follow research conducted by TSB which found that over a third of millennials now feel they are less likely to ever own their own home because of the pandemic.

The survey of 5,000 adults also found 27 per cent had seen their financial wellbeing negatively impacted by the health crisis.

Additionally, a third of millennial homeowners said they were now less likely to move to a new property within the next three years. TSB said this could lead to delays in second-steppers making their next moves up the property ladder.

Ian Ramsden, director of borrowing at TSB, said: “Our research shows the concerns that the millennial generation has about getting on to the property ladder.

“The reductions that we have announced today will help some of them take that first step.”

The changes have been made up to 85 per cent loan to value (LTV). 

This includes the two-year fixed rate product for borrowing amounts of up to 60 per cent LTV with a £995 fee, which has been cut from 0.94 per cent to 0.84 per cent. 

The fee-free alternative has been reduced by 45 bps to 1.24 per cent. 

At 60-75 per cent LTV, the two-year fixed rate with a £995 fee has been cut by 10 basis points to 0.99 per cent, and the fee-free option has been reduced by 55 bps to 1.39 per cent. 

At higher LTVs, rates now vary between 1.69 per cent for a two-year fixed at 75-80 per cent LTV with a £995 fee, to 2.54 per cent for a fee-free product transfer at 80-85 per cent LTV. 

The five-year fixed product transfer at 0-60 per cent LTV has been reduced by 20 bps to 0.99 per cent.  

The fee-free alternative received a significant reduction of 70 bps to 1.24 per cent. Other notable cuts include the 60-75 per cent LTV deal with no fee which went down to 1.44 per cent from 2.09 per cent. 

The 10-year fixed rate product transfer up to 60 per cent LTV with a £995 fee has also been reduced by 30 bps to 2.29 per cent. 

This week’s first comment comes from LankyDes in response to the news that Yorkshire Building Society was bringing out sub-one per cent mortgages up to 75 per cent loan to value (LTV).

He said: “[This is] evidence of an economy gone wrong for 40 years. Utter stupidity these rates, there is no value in the money used to lend any more. Only asset prices matter as the rich know – with their six country houses – that even they might not be safe if [the] money to buy them loses its value.

“Money put into assets like that has been sucked out of the real economy and will stay out forever. Please don’t give me the politics of envy. I envy nobody on Earth. Indeed, I pity people who have such a desire for wealth.”

Stephen Barry also had a view on the low-rate market, as he reacted to the news that TSB was adding a 0.84 per cent deal to its range.

Barry pointed out the discrepancy between these low rate deals, often offered to borrowers with 25-40 per cent equity in their homes and older homeowners who tended to have more equity but were paying higher rates.

He said: “With the latest mortgage deals of less than one per cent with an LTV of 75 per cent it would be interesting to note why the retirement equity release mortgage sector is still on average three times more than that.

“Most clients seeking to release some equity to subsidise their state pension or repay their end of term interest-only mortgages have on average 66 per cent equity.”

The integration will be live for all Smartr365 users from August 2021.

The platform has bedded in integrations with Halifax and Barclays and Smartr confirmed another three lenders will join the Iress platform and integrate with the platform within weeks. Another major lender will complete a direct to Smartr365 integration by the end of Q3.

Each integration is tailored to the individual lender and advisers will need to drop into the lender website during the application, but fact find data collected from Smartr365’s client-facing portal is enlisted to be shared directly with these four lenders, removing the need to re-key.

Smartr365 offers downloadable QR codes which become an app to help consumers fill out its fact find, identity verification via Experian, integrated sourcing and a relationship with conveyancing panel manager ULS.

Conor Murphy (pictured), chief executive of Smartr365, said lenders have made major moves during the pandemic to prioritise technology advances, so service is becoming a major differentiator for brokers when the rate or benefits of a deal are very similar across the major lenders.

“Whether that means having a business development manager available for a chat or a streamlined online system, service is a perfectly reasonable justification for choosing one lender over another. The FCA allows brokers to quote service as a reason barring a one per cent rate differential of course,” said Murphy.

The platform confirmed it has 2,200 users, paying a £100 monthly subscription, equating to growth of 700 per cent in the last 12 months.

The business is owned by founder Conor Murphy and in 2018, received investment from Legal & General. Murphy founded both Capricorn Financial and Smartr365 Technology and continues to operate as CEO for both businesses.

Murphy added: “Everything that Smartr365 does is designed to make a broker’s job simpler and easier, and Iress’ mission is directly aligned to this. We look forward to working with Iress more in the future and continuing our work to transform the mortgage process.”

Andrew Simon, executive general manager of product at Iress, said: “We’re delighted that Smartr365’s integration with Lender Connect is now live. The broker journey has been vastly simplified and users now have access to some of the country’s largest lenders.”

The lender’s two-year fixed rate fee-free product between 60 and 75 per cent LTV has fallen by up to 0.55 per cent to 1.39 per cent, whilst its equivalent two-year fixed rate up to 60 per cent LTV has been reduced by 0.45 per cent to 1.24 per cent.

Both its two-year fixed rate remortgage products with a £995 product fee up to 60 per cent LTV, and between 60 and 75 per cent LTV, have been cut by 0.1 per cent to 0.84 per cent and 0.99 per cent respectively.

TSB has decreased its five-year fixed rate no fee product between 60 and 75 per cent LTV by 0.75 per cent to 1.44 per cent, with its 60 per cent LTV going down by 0.7 per cent to 1.24 per cent.

Its five-year fixed rate up to 60 per cent LTV with a £995 fee has decreased by 0.2 per cent to 1.19 per cent, whilst its similar product between 60 and 75 per cent LTV has fallen by 0.15 per cent to 1.19 per cent.

Coventry BS reduces rates up to 95 per cent LTV

Coventry Building Society has made a range of reductions of up to 50 basis points across its residential range.

The lender has cut rates on its higher loan to value (LTV) products between 80 and 95 per cent by up to 40 basis points.

This includes a reduction to its two-year fixed rate at 90 per cent LTV, which has gone down from 2.79 per cent to 2.45 per cent. The product is available for purchase, remortgage, further advance and product transfer.

The product has early repayment charges (ERCs) in place for the fixed rate period.

The lender has also reduced its lower LTV products between 50 and 75 per cent by up 50 basis points.

Its five-year fixed rate at 50 per cent LTV has decreased from 1.65 per cent to 1.29 per cent. It is subject to ERCs for the fixed rate period.

Jonathan Stinton (pictured), Coventry Building Society’s head of intermediary relationships, said: “Our high LTV residential mortgages are now even more competitive, which is great news for brokers and their clients with smaller deposits.

“Those with a lower LTV have plenty of competitive options too. With a particularly large number of mortgage deals due to end in the next couple of months, now’s the time for brokers to get in touch with their clients and help them to find the right mortgage for their needs.”