TSB becomes the latest lender to reprice as rates are cut by as much as 0.45%.

The bank has lowered residential two-year fixed house purchase rates by up to 0.45%.

However, TSB is increasing rates on product transfer and additional borrowing products.

Product transfer residential two- and five-year fixed rates between 0% and 90% loan-to-value (LTV) are being increased by up to 0.15%, while buy-to-let (BTL) two- and five-year fixed rates between 0% and 75% LTV are up by up to 0.15%.

Additional borrowing on all residential and BTL fixes will go up by as much as 0.15%.

Commenting on TSB’s product changes, Trinity Financial product and communications director Aaron Strutt says: “TSB is following Santander by making some chunky rate reductions which is very welcome news for anyone on the hunt for a more competitively priced mortgage.”

“It seems likely the other big lenders will announce rate cuts soon. TSB has made a few 0.5% rate rises recently so it is great to see the bank cutting its prices again. Coventry has also announced it is lowering some of its rates.”

John Charcol mortgage technical manager Nicholas Mendes adds: “TSB following Santander with rate reductions is another sign that lenders are starting to respond to the recent easing in swap markets, rather than simply holding back and defending pricing.”

“Over the last few days, the move in swaps has been meaningful. Two year SONIA swaps have fallen from 4.111% to 4.000%, three year from 4.084% to 3.980%, and five year from 4.098% to 4.012%.”

“That is not a dramatic reset, but it is a solid move lower and enough to give lenders more confidence to start repricing.”

“After what has been a very turbulent few weeks, this is probably the first point where the market feels a little more settled. It gives lenders a chance to make pricing moves without the same immediate fear that sudden market swings will knock funding costs or service levels back off course. Santander moved yesterday, and TSB is now among the first of the main high street lenders to follow.”

“Other lenders have also made reductions over the last couple of days, which shows there is appetite to stay competitive as others prepare to make similar changes.”

The important caveat is that this is still selective, not broad based. TSB is cutting selected two year house purchase rates by up to 0.45%, but it is also increasing parts of its product transfer and additional borrowing range by up to 0.15%.”

“Santander’s changes were also more focused on purchase and selected product transfer business, rather than a blanket reduction across the board. So, this is better news, but it is not a full market turn just yet.”

Santander will reduce rates across its higher LTV products, effective 16 April.

These include all 85% to 95% LTV two-year fixed, first-time buyer products by up to 0.28%.

The reductions will see Santander’s first-time buyer rates at 85% LTV or higher, starting from 4.90%.

Other first-time buyer rate decreases include the 90% LTV two-year tracker rate, which is being cut by 0.30%, while all 75% LTV 10-year fixed rates are being lowered by up to 0.15%.

Santander is reducing rates across its range of new build first-time buyer exclusives, home mover and large loan ranges.

For home movers all 60 to 95% LTV two-year fixed rates are being cut by up to 0.28% and all 60% to 95% LTV two-year tracker rates are being lowered by up to 0.25%.

The new build first-time buyer 90% LTV two-year tracker rate is being reduced by 0.30%.

Also, all 85% to 95% LTV two-year fixed rates are lowering by up to 0.28%.

All new build home mover 60% to 95% LTV two-year fixed rates are being reduced by up to 0.28%, while all 60% to 95% LTV two-year tracker are being cut by up to 0.25%.

Santander head of mortgage trading Ben Merritt says: “It’s natural that those looking to buy, move or remortgage in the current market may be feeling uncertain about what they should do next. While the recent trend has been to see rates increase, we’re pleased that we’re able to pass on a reduction in borrowing costs following a fall in swap rates.”

Elsewhere, Atom bank has made interest rate cuts across its near prime mortgage range.

All near prime products, for both purchase and remortgage purposes have been reduced by 0.20%.

The cuts apply with immediate effect, and mean that rates now start at 5.39% for those borrowing at up to 60% LTV.

Atom bank head of mortgages Richard Harrison states: “After a turbulent period for the mortgage market, we are pleased to be able to reduce rates across our Near Prime range.”

“This reduction means we can deliver even better value to those looking to borrow with less than perfect credit, irrespective of whether it’s for purchase or refinance, or the size of their deposit.”

In addition, Fleet Mortgages has made rate reductions of 20 basis points on its range of 75% LTV two-year fixed-rate mortgage products.

Within both its standard and limited company ranges, the two-year fixed-rate products have been reduced to 4.29% from 4.49%.

Both products come with a free valuation, an application fee of £199, and a 3% completion fee (minimum of £750).

Fleet’s HMO/MUFB two-year fixed-rate mortgage has been reduced to 4.59% from 4.79%.

It also comes with £1,000 cashback, plus an application fee of £199 and a 3% completion fee (minimum of £750).

The revised fixed-rate pricing following on from the lender’s launch of new two-year trackers last week across all three core ranges.

Fleet Mortgages chief commercial officer Steve Cox notes: “It’s positive to be able to follow last week’s tracker launch with these reductions across our two-year fixed-rate products, particularly given the backdrop of ongoing rate volatility.”

“We are very aware advisers and landlord borrowers are having to assess their options carefully, balancing short-term pricing, swap rates and expectations for Bank Base Rate against each other, and these changes are designed to ensure our fixed-rate products remain competitive within that mix.”

Meanwhile, Coventry for Intermediaries has announced product changes, effective 16 April.

Residential rates for new borrowers will be lowered across all two-year fixed exclusive first-time buyer rates at 65% to 86% LTV and all three-year fixed exclusive first-time buyer rates at 65% to 75% LTV.

Residential new borrower rates will be increased on all fixed exclusive first-time buyer rates at 95% LTV.

For BTL and limited company BTL, all fixed limited company rates for new borrowers will be cut and all fixed remortgage rates at 75% LTV for new borrowers will be lowered.