TSB has cut and raised selected residential fixed-rate prices today following a rise in the cost of living, while Skipton Building Society will make similar changes on Tuesday.
The high street bank says changes to its residential, product transfer and additional borrowing ranges cover:
Residential
- Two-year tracker first-time buyer, home mover and remortgage rates rise by 10bps
- Three-year FTB, home mover and remortgage fixed products replaced with a new fee structure
- The introduction of three-year FTB and home mover 90% loan to value to 95% LTV fixes, with no fee
- Five-year fix FTB and home mover 85% LTV to 95% LTV rates reduced by 10bps
- Shared ownership and shared equity rates reduced by up to 55bps
Product transfer
- Residential three-year fixes up to 75% LTV and 80% LTV to 85% LTV rates reduced by 10bps
Additional borrowing
- Residential three-year fixes up to 75% LTV reduced by 10bps
Meanwhile, Skipton says it will make a range of reductions and rate increases across selected fixed and variable mortgage ranges, for new business and existing customers next week, in a note to brokers.
It will also:
- Withdraw selected products across its residential purchase, residential remortgage and FTB range
- Withdraw five-year buy-to-let £2,995 fee product variants
- Withdraw residential base rate trackers with fees of £745 and £1,495
- Introduce residential base rate trackers with fees of £995
These moves come after inflation jumped to 3.5% in the 12 months to April from 2.6% on Wednesday, which caused many economists to downgrade their forecasts of further Bank of England base rate cuts this year to one, from as many as three.
