TSB has become the latest lender to cut its rates on selected residential mortgages by as much as 60 basis points. 

The lender’s reductions cover: 

• Five-year fixed house purchase rates reduced by up to 60bps 
• Three-year fixed house purchase rates up to 75% loan-to-value rates reduced by 10bps 

The move comes after lenders have made 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 today 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, HSBC and NatWest are among other major lenders to have cut their fixed-rate home loans over the last two weeks.