TSB is cutting rates by as much as 25 basis points tomorrow and HSBC is dropping prices by an unspecified amount.

It comes as major lenders have been battling it out to offer the lowest sub-4% five-year fixed rates in recent weeks.

These headline-grabbing rates have only been available to borrowers with deposits of at least 40%.

But TSB is making its biggest reductions to five-year deals for borrowers with smaller deposits of 10-20%.

Among the changes tomorrow:

• Five-year fixes for first-time buyers and home movers at 80-90% LTV will fall by up to 0.25 percentage points.
• Three-year fixes for first-time buyers and home movers at 60-75% LTV and 85-90% LTV will drop by up to 0.24 percentage points.
• Two-year fixed rates for FTBs and home movers will be cut by up to 0.2 percentage points.

HSBC has revealed it will cut rates on a wide range of residential and buy-to-let products in many different LTV tiers.

But the lender does not normally share details of the size of its rate cuts rates in advance.

John Charcol mortgage technical manager Nicholas Mendes says: “HSBC’s recent repricing move comes as no surprise, following similar actions from other major high street lenders. 

“Given the competitive nature of the mortgage market, it was only a matter of time before HSBC adjusted its rates in response to the broader market trends.

“This move is strategically aligned with the bank’s efforts to remain competitive and potentially position itself as a new best buy.”