"Rate cuts of 0.5% are great news for borrowers and show how competitive it is among lenders to drum up business."
From tomorrow, TSB is making further rate reductions across its residential, buy-to-let, product transfer, and additional borrowing ranges by up to 0.50%.
In its residential range, two-year fixed rate purchase and remortgage rates up to 75% LTV will reduce by up to 0.20%.
Buy-to-let two and five-year purchase and remortgage rates and product transfer rates are lowering by up to 0.50%, while additional borrowing products are also down by up to 0.50%.
Buy-to-let two and five-year fixed rate remortgage products with no fee have also seen cuts and now start from 5.79%.
News agency, Newspage, asked brokers for their views.
Jamie Lennox, director at Dimora Mortgages, said: "It's great news to see TSB come out with some chunky reductions across their product range. Following yesterday's comments from the Governor of the Bank of England, Andrew Bailey that we are near the top of the cycle, this will give huge confidence to banks and building societies that we are approaching the end of base rate rises. This could drive further reductions across the mortgage industry, providing huge relief for many families who are treading water to keep their finances afloat."
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, commented: "Another step in the right direction for rates that can only be seen as a positive. We're not out of the woods yet due to the lagging effect of rising rates, however with several large lenders all following suit, this is a glimmer of hope that the worst is behind us. All eyes will now be on the Bank of England this month when they decide what to do with the base rate in response to the inflation data due out on the 20th. Everyone in the UK should have their fingers crossed because, like it or not, it affects us all."
Craig Fish, director at Lodestone Mortgages & Protection, said: "These rate reductions are much more note and newsworthy than some that we have witnessed of late and will be welcomed by brokers and borrowers alike. It certainly seems that the current trend is downward, let's just hope this continues. These reductions will now bring TSB into line with some of the other lenders, who are all vying for business levels in their preferred market space. Let's face it though, the reductions are going to need to be bigger than this to pump some life back into the market."
Graham Cox, founder at Self Employed Mortgage Hub, added: "Rate cuts of 0.5% are great news for borrowers and show how competitive it is among lenders to drum up business. In addition, UK swap rates are slowly falling, and this makes wholesale funding costs for lenders less expensive. Whisper it, but there are tentative signs the worst is over."
