Three major high street lenders have announced reductions to mortgage rates, with TSB cutting selected rates by up to 0.8%. Santander and first direct have also lowered rates, joining a growing list of lenders including HSBC, Barclays, and Virgin Money responding to improved market confidence.
TSB has trimmed residential purchase and remortgage rates by up to 0.6% and Buy to Let rates by up to 0.8%, effective from Friday. Santander is reducing selected new business first-time buyer, home mover and remortgage fixed rates by up to 0.25%, with product transfer cuts of up to 0.08%. First direct has lowered rates across dozens of two and five-year fixed products by up to 0.38%, with its two-year fixed fee standard at 60% LTV now starting at 4.71%.
Brokers expressed cautious optimism. Justin Moy of EHF Mortgages said: 'Lenders are clearly looking to encourage borrowers and feel the outlook is better than a few weeks ago.' Ken James of Contractor Mortgage Services warned the market remained 'hypersensitive', adding that 'if we blink at the wrong moment, the News at Ten could still deliver another setback.' Harry Goodliffe of HTG Mortgages cautioned it was 'too early to call a proper trend', while Richard Davidson of onlinemortgageadvisor.co.uk offered a cautiously positive outlook.
The rate cuts follow a period of volatility triggered by geopolitical tensions, particularly in the Middle East, but lenders are now showing renewed confidence. Borrowers are advised to act quickly to secure the lower rates, though the market remains fragile and subject to sudden changes.
