TSB and Santander have continued the summer trend of lenders of making a wide selection of mortgage rate cuts.
Last week, Barclays, Coventry Building Society and Halifax followed Nationwide, Virgin Money, First Direct and Skipton Building Society’s footsteps, announcing price drops to home buyers and movers.
Now, two providers have kicked off the week by announcing more reductions.
As part of YourMoney.com’s mortgage rate roundup, we take a look at the details of the level of those cuts.
TSB are knocking down fixed rates for two-, three- and five-year deals for first-time buyers and home movers.
A two-year fix up to 85% loan to value (LTV) will go down by up to 0.15%, while a three-year fix to finance between 60 and 85% LTV mortgages will reduce by 0.10%.
A five-year fix for up to 85% LTV will decrease by up to 0.15% and for a remortgage deal up to 90% LTV prices will be slashed by up to 0.20%.
Elsewhere in its buy-to-let (BTL) range a fixed rate house purchase deal up to 65% LTV will be cut by 0.10% – the same level that the two-year fixed remortgage deals will reduce by up to 75% LTV. That offer comes with a £1,995 fee.
For borrowers wanting a product transfer, the rate drops across three- and five-year fixes will be made up to 0.15%. The five-year option covers up to 90% LTV.
For BTL customers there is a two-year fix up to 75% LTV being cut by 0.10% and a five-year deal to finance 80% of the property going down by 0.15% in some instances.
The final reductions come in the additional borrowing range, where residential three- and five-year deals will be dropped by up to 0.15%. The BTL rates for two and five-year products will also fall by the same percentage.
Rate cuts announced on week of inflation update
As the UK awaits the inflation announcement this week, which is widely reported to remain at the Bank of England’s 2% target, Santander added its name to the lenders dropping rates for borrowers.
The provider will lower selected residential fixed rates and all buy-to-let fixed rates in its new business and product transfer range.
Its new business range of selected residential fixed rates would be lowered by between 0.02% and 0.14% for purchases and remortgage.
Selected new build fixed rates would fall by around 0.02% and 0.1%. All large loan fixed rates will decrease by 0.1% and two-year tracker rates will go down by 0.15%.
Meanwhile, every buy-to-let fixed rate will fall by around 0.04% and 0.13%. Santander is also introducing a one-year buy-to-let fixed rate in its product transfer range and new business remortgage range, at 75% LTV with a £1,749 fee for a remortgage deal.
The firm also announced it would be removing all new business and product transfer buy-to-let two-year tracker ranges.
In its product transfer range, selected residential fixed rates will go down by 0.03% and 0.11% while all buy-to-let fixed rates will decrease by 0.04% and 0.07%.