TSB has cut rates on selected residential fixed-rate deals by up to 20 basis points.
The bank’s reductions cover:
- Five-year first-time buyer and home mover fixes up to 85% loan to value and 90% to 95% LTV reduced by up to 20bps
- Two- and three-year first-time buyer and home mover fixes between 75% and 80% LTV reduced by up to 15bps
- Two-year remortgage fixes between 75% and 80% LTV reduced by 10bps
- Five-year remortgage fixes up to 80% LTV reduced by 10bps
These cuts come at a time when brokers expected lenders to increase rates following a gloomier outlook on central base rate cuts after US inflation lifted to 3.5% earlier this week, up from 3.2% a month ago, topping the 3.4% consensus.
This prompted Monetary Policy Committee member Megan Greene to say that UK traders who favour Bank of England interest rate cuts in the summer are “making bets in the wrong direction” as any easing is “some way off.”
Markets are now betting that UK Bank rate will fall to around 4.75% by the end of the year, down from its current level of 5.25%, having previously been expected to drop to 4.5% by December.
