TSB has triggered a new round of mortgage interest rate cuts that could save buyers £50-£60 a month on a £250,000 home loan.
Mortgage brokers described the rate cuts across a series of products as “aggressive” and predicted that other major lenders will follow suit as the battle for buyers heats up ahead of Christmas.
TSB is cutting the rates by 0.1 to 0.4 percent across first-time buyer loans and some remortgage deals running for two, three and five years.
David Stirling, Independent Financial Advisor at Mint Mortgages & Protection, said: “TSB have shot out of the blocks this morning and made clear their intentions. Other lenders will take note and we will very likely see more cuts throughout the week. With each set of cuts, borrowers are the winners.”
Hannah Bashford, Director at Model Financial Solutions, said: “It’s great to see sizeable reductions from a mainstream lender and hopefully a continuing trend. Let the games commence.”
Ben Perks, Managing Director at Orchard Financial Advisers, told Newspage: “The ever tenacious TSB have announced another round of rate cuts to start off the week. This is an aggressive move that sends a clear message to the market: we want to lend. It’s over to the competition to cut and keep up now.”
Rohit Kohli, Director at The Mortgage Stop, welcomed the cuts, adding: “Kudos to TSB for taking this leap of faith and we’ll be waiting to see how other lenders react to this move.”
Looking ahead, Harps Garcha, Director at Brooklyns Financial, said: “”TSB has kicked off the week with some sizeable rate cuts, and you can bet other banks will follow suit. Now that the holidays are done, these steady drops in rates are sure to fire up the housing market.”
Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, said: “As TSB slashes rates across the board, the mortgage market continues to heat up, and borrowers are the real winners.
“This is part of a larger trend that could see more lenders following suit, with the sector engaged in a game of financial leapfrog as lenders vie to outdo each other. With rates being slashed, the winds of change are finally ushering in a new era of affordability for homeowners.”
Simon Bridgland, Director at Release Freedom, said the falls in home loan rates follow reductions in so-called swap rates, which are the interest rates financial institutions charge to lend to one another.
Justin Moy, Managing Director at EHF Mortgages, said: “The level of rate cut is important and TSB are not holding back, potentially forcing the hands of other lenders in their quest for a strong end to 2024.”
Rob Gill, Managing Director at Altura Mortgage Finance, said: “Mortgage rates are falling faster than Autumnal leaves.”
