TSB has today announced its lowest fixed rate mortgage since May 2015 while cutting rates on a range of products.
Home movers and those who have remortgages with a loan-to-value of up to 60 per cent will benefit from a reduction of 0.15 per cent, making the company’s two-year fixed rate mortgage of 1.44 per cent its best rate since May.
Two-year tracker mortgages with a product fee and LTV of up to 60 per cent will also be reduced by 0.15 per cent.
Today’s rate changes follow reductions to the TSB mortgage range announced last month.
William Hunter, director of Hunter Wealth Management, said: “I think this is a really positive move that will have a hugely positive impact on purchase mobility.
“Its also a really strong indicator that interests rates will stay the same which will in turn allow more people to get on the property ladder.”
TSB’s cuts come after back in September research from Moneyfacts showed the lowest five-year fixed mortgage rates may already be a thing of the past.
With talk of a base rate increase in the near-future reaching fever-pitch, Moneyfacts has found five-year fixed rates have been particularly badly affected as the likelihood of a base rate increase within the next five years is high.
For instance, the average five-year fixed rate at 60 per cent loan-to-value has increased from 2.54 per cent to 2.66 per cent in the space of just two months, Moneyfacts found.
ruth.gillbe@ft.com
