May 14, 2024 2:34 pm

Insert Lead Generation
Nikka Sulton

TSB has announced plans to reduce its mortgage rates across various products, with cuts of up to 0.15% set to take effect on its 2, 3, and 5-year fixed-rate options. These adjustments are expected to impact a wide range of borrowers, including first-time buyers, home movers, and those looking to remortgage, particularly those with a loan-to-value (LTV) ratio of 0-75%.

These rate reductions come into effect from Friday, 10 May, coinciding with the decision of the Bank of England to maintain the Base Rate at 5.25%. Despite the recent trend of lenders increasing their rates, TSB’s move marks a departure, with the bank opting to lower its prices instead. This decision could provide welcome relief for borrowers seeking more affordable mortgage options amidst a challenging economic climate.

For first-time buyers, securing an affordable mortgage is often a critical step towards homeownership. With TSB’s rate cuts, these buyers may find themselves in a more favorable position, potentially making homeownership more accessible. Similarly, existing homeowners looking to move may benefit from reduced mortgage costs, enabling them to navigate the property market with greater flexibility and confidence.

Remortgaging is also set to become more appealing for borrowers with a 0-75% loan-to-value ratio, as they stand to benefit from the lowered rates offered by TSB. By refinancing their existing mortgage at a more competitive rate, these borrowers could potentially reduce their monthly payments and save money over the life of their loan. This move by TSB reflects the bank’s commitment to supporting borrowers and adapting to the evolving needs of the housing market.

Overall, TSB’s decision to reduce mortgage rates demonstrates a proactive approach to addressing the challenges faced by borrowers in the current economic climate. By offering more competitive rates, the bank aims to empower individuals and families to achieve their homeownership goals while navigating the complexities of the property market. As the housing market continues to evolve, borrowers can look to TSB for accessible and affordable mortgage solutions.

Earlier today, ‘Buy to Let by Foundation,‘ a prominent buy-to-let division of Foundation Home Loans, unveiled a series of new products aimed specifically at short-term and holiday lets. This strategic move demonstrates a keen understanding of market demands, catering to the evolving needs of property investors seeking opportunities in the lucrative short-stay rental sector. Moreover, in a bid to enhance affordability and accessibility, Foundation Home Loans has concurrently implemented a reduction in fees across its existing product range, further incentivizing prospective buyers and facilitating smoother transactions.

Meanwhile, on Wednesday, MPowered Mortgages, a notable player in the mortgage market, implemented significant rate reductions across its offerings. The highlight of this development is the reduction of rates by up to 0.65%, marking a substantial shift in the competitive landscape. Notably, their 3-year fixed remortgage products now boast starting rates as low as 4.49%, a notable drop from the previous 4.59% at 60% Loan-to-Value (LTV). This move not only aligns with the prevailing market trends but also underscores MPowered Mortgages’ commitment to providing attractive financing options for prospective homeowners and remortgagors alike.

TSB has recently announced significant cuts to its residential fixed-rate mortgages, slashing rates by up to 15 basis points. These adjustments span across a range of mortgage products, including two-, three-, and five-year fixed-rate deals tailored for first-time buyers, home movers, and those considering remortgaging. With a focus on affordability and accessibility, TSB aims to provide competitive options for borrowers with loan-to-value ratios of up to 75%.

This move comes as part of TSB’s ongoing efforts to adapt to market conditions and meet the evolving needs of customers. By reducing rates on a variety of fixed-rate mortgages, TSB aims to enhance affordability and support individuals looking to enter the property market, move home, or refinance their existing mortgage. With these adjustments, TSB seeks to offer attractive financing solutions that align with borrowers’ financial goals and circumstances, providing greater flexibility and choice in the mortgage market.


Highlights include:  

  • For first-time buyers (FTBs), TSB offers two-year fixed-rate deals with loan-to-value (LTV) ratios of up to 60%, starting at 4.89% and accompanied by a £999 fee.
  • Home movers can benefit from three-year fixed-rate mortgages at up to 60% LTV, commencing at 4.74% and featuring a £999 fee.
  • Those considering remortgaging have the option of five-year fixed-rate deals at up to 60% LTV, beginning at 4.59% and including a £999 fee.


The recent decision by the lender to adjust its rates coincides with the Bank of England’s announcement of maintaining the UK interest rates at 5.25% for the sixth consecutive time. This steady stance from the central bank is met with cautious optimism, with Governor Andrew Bailey expressing confidence in the economy’s direction. However, Bailey’s remarks suggest a potential shift in monetary policy, indicating the possibility of rate cuts earlier than anticipated, potentially during the summer months rather than waiting until autumn. This adjustment comes as the central bank revises its inflation forecasts, highlighting the delicate balance between economic stability and inflation management.

Amidst the backdrop of these developments, the Bank of England’s Monetary Policy Committee projects a stabilization of inflation around the 2% target in the second quarter. However, they anticipate a marginal increase to approximately 2.5% in the latter part of the year, attributed mainly to adjustments in energy-related factors. Despite this slight uptick, the Committee remains vigilant, emphasizing the importance of sustained low inflation for any potential adjustments in interest rates. Governor Bailey’s cautious optimism reflects a desire for further evidence of economic stability before considering any significant policy shifts, underscoring the need for a balanced approach to monetary policy in the face of evolving economic dynamics.

Governor Bailey’s optimistic outlook is grounded in recent developments indicating positive momentum in key economic indicators. However, he stresses the need for caution, emphasizing the importance of observing sustained low inflation before contemplating any alterations to interest rates. This cautious approach aligns with the central bank’s mandate to promote economic stability while ensuring inflation remains within target levels. As policymakers navigate these complexities, the mortgage industry awaits further clarity on the trajectory of interest rates, with potential implications for borrowing costs and market dynamics.



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