TSB is cutting rates by up to 0.21 percentage points across a range of fixed term mortgages for borrowers with smaller deposits.

TSB is helping people with a loan to value ratio between 85% and 95% who are looking to buy a new home by reducing rates across a range of its fixed term mortgages.  Rates now start from 3.09% and are available to homebuyers looking for two, three and five-year fixed rate mortgages.

The bank has cut rates on its signature Fix and Flex mortgage to 4.94%.  Fix and Flex allows people to set their mortgage rate for 10 years but leave after five, without penalty, should their circumstances change.

TSB has also cut the mortgage rates on its new stepped three-year mortgage by 0.2%.  It provides a lower interest rate in the first year.

TSB has also introduced £1,000 cashback for homebuyers with an LTV between 85% and 90% and looking to fix their mortgage rate for the next three years.