TSB cut rates across parts of its residential mortgage range today as lenders continue repricing products amid ongoing swap rate volatility and competition for lower loan-to-value business.

The latest reductions apply across selected house purchase and remortgage products, including affordable housing options.

Within the updated range, TSB is cutting rates on selected 2-year fixed house purchase deals by 0.05%, while 3-year fixed house purchase products will reduce by up to 0.20%.

The lender is also lowering selected 2-year fixed remortgage rates at up to 75% loan-to-value by as much as 0.10%. Existing versions of the affected products will be withdrawn at the end of Thursday 21 May.

SECURE PRICING

TSB said brokers must fully submit applications for the withdrawn deals before that deadline in order to secure existing pricing.

The changes come as lenders continue adjusting mortgage pricing following recent fluctuations in swap rates, inflation expectations and Bank of England rate forecasts.

A growing number of lenders have repriced products in recent weeks as competition remains strongest across lower-LTV residential business despite affordability pressures continuing to affect borrower demand.

TSB also reminded brokers to select relevant EPC-linked products where customers qualify in order to secure cashback incentives.

The lender continues to offer six-month mortgage offer validity periods plus a 28-day extension on house purchase and remortgage applications, alongside a 180-day extension for new-build applications subject to criteria.

COMPETITION HEATING UP

Rachel Geddes (main picture), strategic lender relationship director at Mortgage Advice Bureau, said: “Lenders cutting rates again is another sign that competition in the mortgage market is heating up, as swap rates continue to ease and markets respond positively to a more encouraging inflation outlook.

“At the same time, the withdrawal of selected products – particularly in the first-time buyer space – shows that there’s still a need to carefully balance competitiveness with margin and risk appetite.

“We’re now seeing a broader trend across the market, with major lenders repricing far more frequently.

For mortgage customers, that’s encouraging news, with improving competition helping to create greater choice and potentially lower borrowing costs.

“However, this remains a fast-moving market, where rates and products can change quickly. Securing the right deal at the right time is becoming increasingly important.”