TSB and Santander have become the latest high street banks to announce mortgage rate reductions, with the former cutting selected rates by up to 0.8%. From Friday 24 April, TSB has reduced selected residential purchase and remortgage rates by up to 0.6% and rates on selected Buy to Let and Portfolio Buy to Let products by up to 0.8%.
Meanwhile, Santander has announced that it is reducing selected new business first-time buyer (FTB), home mover and remortgage fixed rates by up to 0.25%. In its product transfer range, it is reducing certain residential fixed rates by up to 0.08%.
They follow Virgin Money, which announced earlier this week that it will be reducing selected fixed rates by up to 0.45%. From today (April 23), they are reducing 2-year fixed rates by up to 0.37%, 5-year fixed rates by up to 0.45%, 10-year fixed rates by 0.40% and Shared Ownership fixed rates by up to 0.45%. Remortgages will see 2-year fixed rates come down by up to 0.32%, 5-year fixed rates reduced by up to 0.35% while the 75% loan-to-value (LTV) 10-year Fixed Rate fee-saver product will be reduced by 0.25%. Virgin Money also announced its 2-year tracker rates will be increased by up to 0.25%.
Speaking to Newspage, Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: "Swap rates haven't improved significantly, suggesting that lender confidence is just as important as pricing. The good news here is that both property buyers and remortgage borrowers see a benefit, and so they may want to grab the opportunity while they can. Though TSB have been a bit expensive recently, these rate cuts are a significant shift for the lender as muted confidence returns to the mortgage market."
