TSB cuts rates on two- and five-year mortgages

TSB has reduced rates across its mortgage range by up to 0.3 percentage points.

The new deals are aimed at new homebuyers and homeowners interested in remortgaging who are looking for  two- and five-year deals.

The biggest cut (of 0.3 percentage points) was made to remortgage rates for products with a loan-to-value (LTV) of 80 to 85 per cent. In this LTV range TSB now offers a two-year fix at 2.39 per cent and a £995 fee and a two-year tracker at 2.19 per cent and a £995 fee.

The largest reduction (of 0.25 percentage points) in the 60 per cent LTV range was for a five-year remortgage fix, which is now available at 2.49 per cent and £0 fee.

For a homeowners, with £200,000 outstanding on their mortgage, this equates to an extra £350 in their pocket over the first year alone.

In addition, TSB current account holders, who are looking to remortgage, can benefit from a £150 cashback, when remortgaging with the bank.

New homebuyers are also being offered some competitive deals for two-year fixed and tracker rate mortgages with LTV ranging from 60 to 85 per cent.

The lowest rate offers here a two-year fix of 1.99 per cent and a two-year tracker of 1.79 per cent. Both products come with a £995 fee and are for loans with 75 to 80 per cent LTV.

In the five-year fixed mortgage range, TSB has cut the rates of two deals at 80-85 per cent LTV — a 3.59 per cent fix with a £995 fee and a 3.74 per cent fix with £0 fee.