TSB has reduced selected rates by up to 0.20% on residential, product transfer and additional borrowing ranges, effective tomorrow (26 July).

Rates will be reduced across two-, three- and five-year fixed first-time buyer and home move 0.75% loan-to-value (LTV), by up to 0.10%.

Meanwhile, two-, three- and five-year fixed remortgage 0-75% LTVs will be lowered by 0.20%.

Product transfer rate changes include: Residential 2 Year Fixed 0-80% LTV, by up to 0.15% Residential 3 Year Fixed 0-75% LTV, by 0.10% Residential 5 Year Fixed, by up to 0.20%

Additional borrowing rate changes include: Residential 2 Year Fixed 0-80% LTV, by up to 0.15% Residential 3 Year Fixed 0-75% LTV, by 0.10% Residential 5 Year Fixed 0-80% LTV, by up to 0.20%

Charcoal mortgage technical manager Nicholas Mendes says: “TSB’s latest reduction in mortgage rates is great news for borrowers. With reductions across 2, 3, and 5-year fixed rates for First Time Buyers, Home Movers, and Remortgage products, as well as Product Transfers and Additional Borrowing, TSB is making home financing more affordable.”

“The cuts, which range from 0.10% to 0.20%, reflect strong market competition and confidence in swap rates holding steady as the anticipated reduction in the base rate draws nearer.”

On Tuesday, TSB posted a first-half pre-tax profit of £111.6m, down 24.5% on a year ago, due to “lower mortgage margins in challenging market conditions”.

The bank said, “lower mortgage margins in challenging market conditions as well as an increase of £126m in interest paid to our deposit customers in the period, with net interest margin 22 basis points lower than the first half of 2023 at 2.62%”.

It added in a statement that customer loans slipped 0.3% to £36.6bn year on year, but have risen by 1.1% since December.