Mortgages  

TSB cap busy week with rate reductions across range

TSB cap busy week with rate reductions across range

Challenger bank TSB capped a busy week with a range of mortgage rate reductions for homebuyers with smaller deposits today (29 May).

The lender cut rates by 0.2 per cent across its two, three and five-year fixed rates for borrowers looking to buy a home with an loan-to-value between 85 and 90 per cent.

Rates start at 3.49 per cent for homebuyers taking out a two-year fix with a deposit of 10 to 15 per cent of the property’s value, while a couple of deals at 90 to 95 per cent LTV were also offered, but only direct through branch or telephone mortgage advisers.

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TSB also made cuts for those looking for a longer term fixed deal, with five-year rates now down to 4.09 per cent with a £995 fee.

However, two-year mortgages for LTV ratios between 0-75 per cent will see rate increases between 0.1 and 0.2 per cent, which it noted remain in line with rises across the rest of the market.

Earlier this week TSB Intermediary announced that it had hired an extra 55 new partners since the start of the year, to meet the demand for its mortgages from brokers. Then earlier today, the lender stated it would offer mortgages which, for the first year, have a lower interest rate for both first time buyers and those wishing to move home.

Meanwhile, intermediary-only lender Accord Mortgages reduced rates on its three-year fixed rate mortgages by 0.10 per cent for those with a 35 per cent deposit.

David Robinson, national intermediary sales manager for Accord, added that the mortgages also cashback on completion and free standard valuation.

Finally, Nationwide has reduced selected two-year fixed rates by up to 0.1 per cent for existing mortgage customers looking for a new deal.

As part of its Loyalty Rate Mortgages initiative, rates for the 70 per cent loan to value two-year fixed product start at 1.54 per cent, while the 75 per cent LTV two-year fix start at 1.64 per cent.

Here are all the rates that were publicly announced this week:

LenderLTV/Type Headline Rate Product Fee
TSB60%/2-year fixed1.49%£1,995
TSB60%/2-year fixed1.59%£995
TSB60%/2-year tracker1.29%£1,995
TSB60-75%/2-year tracker1.54%£995
TSB60-75%/2-year fixed1.74%£1,995
TSB60-75%/2-year fixed1.84%£995
Accord Mortgages65%/3-year fixed1.84%£845
Accord Mortgages65%/3-year fixed1.94%£845
Nationwide70%/2-year fixed1.54%£999
Nationwide70%/2-year fixed1.94%£0
Nationwide75%/2-year fixed1.64%£999
Nationwide75%/2-year fixed2.04%£0
TSB85-90%/2-year fixed3.49%£995
TSB85-90%/2-year fixed3.89%£0
TSB85-90/3-year fixed3.94%£995
TSB85-90/5-year fixed4.09%£995
TSB85-90/5-year fixed4.29%£0
TSB90-95%/5-year fixed4.89% (direct only)£0
TSB90-95%/2-year fixed4.49% (direct only)£0

peter.walker@ft.com