TSB will come to market with its latest round of residential rate cuts of 10 basis points at the end of the week. 

The high street lender says it will reduce its two-year fixed-rate house purchase and remortgage loans up to 75% loan to value by 10bps on Friday (25 August). 

It will also cut rates on its three-year fixed-rate remortgage lending up to 75% LTV by 10bps. 

The business says the reductions are a response to two- and five-year swap rates also falling over the past 24 hours. 

Two-year Sonia swap rates are down to 5.484% today from 5.668% yesterday, while the five-year rate has moved to 4.810% from 5.017% over the same period, according to Chatham Financial. 

The reductions come as lenders make several rounds of rate cuts following the Bank of England’s base rate rise by 25bps to 5.25% earlier this month, its 14th consecutive rise taking it to the highest level for 15 years.         

The central bank is battling inflation, which dropped to 6.8% in the year to July from 7.9% in June, but still remains almost three-and-a-half times higher than its 2% target.     

However, lenders say swap rates have fallen from their early July peak, allowing many of them to cut rates.      

Halifax, Nationwide and NatWest are among other major lenders to have cut their fixed-rate home loans over the last three weeks. TSB previously cut rates last week.