TSB has this morning announced further rate cuts as lenders battle to secure market share, with rates starting from 4.89%.
The lender announced, “On Tuesday 3 October, we’re making further reductions to our Residential, Product Transfer and Additional Borrowing rates by up to 0.35%. With rates starting from 4.89%. With all our Residential Remortgage products also benefitting from a free basic valuation, together with a choice of free legal assistance, or £300 cashback, we continue to help customers borrow well.”
Brokers welcomed the news. Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages, said: “It’s great to see some fresh rate reductions despite fears that they may be coming to an end following the slight reversal in swap rates. This highlights very clearly the fact that lenders still have money to lend and are fighting with each other over a smaller number of borrowers. Right now, market share is an absolute focus of the big lenders.”
Steven Hargreaves, mortgage adviser at Leeds-based The Mortgage Co, also said lenders are having to sacrifice margins to attract new business: “This is another sign that lenders are all having to cut their rates and margins to secure their percentage of the mortgage market and attract business. It’s great news for us brokers and even better news for anyone needing a mortgage, as the reductions apply to buyers, remortgagors and product transfers.
Gary Bush, financial adviser at the Potters Bar-based MortgageShop.com, was also upbeat on the news: “Any mortgage rate range that starts with a 4 is now very much welcomed. It’s great to see the UK lender mortgage rate war rumble on.
Meanwhile, Charles Breen, director of Wellingborough-based mortgage broker, Montgomery Financial, suggested this may signal that lenders believe the worst is now behind us: “All these ongoing rate reductions by lenders suggest they have confidence that the worst is over and we have weathered the storm.”