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TSB, Santander and Yorkshire BS follow the summer's mortgage rate-cutting trend

TSB, Santander and Yorkshire BS follow the summer's mortgage rate-cutting trend
Matt Browning
Written By:
Posted:
15/07/2024
Updated:
13/08/2024

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 in Nationwide, Virgin Money, First Direct and Skipton Building Society’s footsteps, announcing price drops to home buyers and movers.

Now, three providers have kicked off the week by announcing more reductions.

As part of YourMoney.com’s mortgage rate round-up, we take a look at the details of the level of those cuts.

TSB is knocking down fixed rates for two-, three- and five-year deals for first-time buyers and homemovers.

A two-year fee-free fix up to 85% loan to value (LTV) will go down by up to 0.15% and is now 5.49%, while a three-year fix to finance 60% will dip to 4.85% with a £495 product fee to pay.

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A five-year fix for 85% LTV will decrease by 0.15% to commence at 4.89%, and for a remortgage deal up to 90% LTV, prices will be slashed by up to 0.2%.

A two-year fix up to 60% LTV is now priced at 4.94% with a £995 product fee on top.

Elsewhere in its buy-to-let (BTL) range, a fixed rate house purchase deal up to 65% LTV will be cut by 0.1% – 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 0.1% to 4.79% and a five-year deal to finance 80% of the property going down 4.84% for a fee-free deal.

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 BTL 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%. A three-year fix up to 60% LTV with no fee now stands at 4.78%.

Meanwhile, every BTL fixed rate will fall by around 0.04% and 0.13%. Santander is also introducing a one-year BTL fixed rate of 5.37% 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 BTL two-year tracker ranges.

In its product transfer range, selected residential fixed rates will go down by 0.03% and 0.11%, while all BTL fixed rates will decrease by 0.04% and 0.07%.

It means a 60% LTV mortgage without a fee begins at 5.29% and the 75% LTV starts at 5.41%.

Yorkshire BS completes the trio

Completing the trio of providers making cuts, Yorkshire Building Society reduced mortgage rates for the second time in two weeks, this time by up to 0.25%.

Deals include a two-year fixed mortgage rate for up to 75% LTV, which has decreased from 4.89% to 4.69%. This product is available for purchase and comes with a £1,495 fee to pay, but also contains a free standard valuation. 

The three-year fixed rate deal to cover up to 80% LTV on a purchase and remortgage deal has reduced to 5.04% from 5.29%. It has no fee but does include a free valuation. 

There is also a five-year fixed rate mortgage available that’s been snipped by 0.1% to stand at 4.49%, for a deal up to 75% LTV. This is for if you are remortgaging your home and comes with a £1,495 fee. This has free valuations and no legal fees.