Mortgages  

TSB cuts rates across high LTV ranges

TSB has cut rates across a range of mortgages for homemovers with a high loan-to-value, in addition to dropping rates for remortgagers with a low LTV.

The biggest rate cut announced was 0.4 per cent on its two-year fixed rate mortgage for homemovers with a LTV of 85 to 90 per cent, while customers with the same LTV looking for a three-year fixed rate mortgage can get a 0.3 per cent reduction.

Homemovers with a slightly higher LTV of 90 to 95 per cent will see reductions of 0.2 per cent on two-year fixed rate mortgages and a 0.1 per cent on five and 10-year fixed mortgages.

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Also helping remortgagers with lower LTVs, TSB has reduced the rate of its five-year fixed rate remortgage product for customers with a LTV of up to 60 per cent.

In April, the bank cut up to 0.35 per cent off its range of two, three and five-year buy-to-let terms and 0.3 per cent across a selection of residential mortgages.

This followed the March launch of several new remortgage products, available to homeowners with small deposits.

Islay Robinson, chief executive of broker Enness Private Clients, said lenders are cutting rates to keep the residential market active in light of the uncertainty around Brexit, as well as to attract potential buy-to-let landlords following the increase in stamp duty on buy-to-let properties.

“Adverse lenders are also dropping rates, particularly on fixed rate products, because people are looking to take out mortgages ahead of Brexit. As such, there has never been a better time to remortgage; rates are getting lower and there are an increasing number of fixed rate products, including fixed rates for 10 years, coming to the market due to an increase in demand.

“The last three years has seen consistently low rates and people want to be fixed in for longer. Although we don’t expect much change should we remain in the EU, the uncertainty surrounding a leave vote is encouraging clients to fix rates, and, despite there being no signs that rates will increase in the near future, lenders are still giving borrowers the option to fix their mortgages at rates the same as a tracker mortgage.”

peter.walker@ft.com