TSB has become the latest lender cut rates below 5% after announcing it will make further reductions to its residential, product transfer and additional borrowing range by up to 0.35%.

With rates starting from 4.89%, TSB is following other high street banks such as Santander by introducing sub-5% deals.

The lender is reducing two-year fixed rates up to 90% LTV for new buyers and remortgagers by up to 0.25% from tomorrow (3 October).

Meanwhile, five-year fixed rates will be reduced by up to 30bps.

It is also reducing rates across it product transfer range.

Two and five-year fixed rates up to 90% LTV will be cut by up to 0.35%, while three year fixed between 75% and 85% will be reduced by 0.10%.

The lender is also making cuts across its additional borrowing range, with two-year fixed rates being reduced by up to 0.20%, three-year fixed between 75% and 80% LTV by 0.10% and five-year fixed by up to 0.25%.

In addition, all of TSB’s residential remortgage products will also include free basic valuation, together with a choice of free legal assistance, or £300 cashback.

John Charcol technical mortgage manager Nicholas Mendes says: “TSB are the latest lender to break the 5% barrier to kick start the week.

“Despite concerns that a recent rise in swaps will dappen the mood with lenders, it’s great to see another high street lender make a reduction in fixed pricing.”