TSB is cutting rates by up to 40 basis points on a number of deals tomorrow, including reductions of 30 bps on some 85 per cent loan-to-value products.

For purchases, the lender is making the following rate cuts:

• Two-year fixed rate at 60 per cent LTV will be cut by 15 bps from 1.39 per cent to 1.24 per cent with a £995 fee.
• Two-year fix at 85 per cent LTV will fall by 40 bps from 2.99 to 2.69 per cent with a £995 fee.
• Five-year fix at 60 per cent LTV will come down by 40 bps from 1.79 per cent to 1.39 per cent with a £995 fee.

The following remortgage rates are also reducing:

• Five-year fix with a choice of free legals or £300 cashback at 60 per cent LTV will be cut by 35 basis points from 1.64 per cent to 1.29 per cent with a £1,495 fee.
• The alternative option with a lower £995 fee will reduce from 1.74 to 1.39 per cent