TSB and NatWest have said they are reducing mortgage rates, which will be effective from Friday July 19.
Rates will be cut by NatWest across a range of deals by as much as 23 basis points, while TSB will also be lowering rates by up to 15 bps.
The details of NatWest deals include:
Selected two and five-year deals for purchase will drop by up to 23 basis points.
For remortgage, two and five-year deals will drop by up to 18 bps
High value deals for purchase and remortgage will be cut by up to 18 bps
Selected first-time buyer two and five-year deals will be trimmed by up to 14 bps
Shared equity purchase rates will be cut by up to 23 bps and remortgage rates by up to 12 bps
Some buy-to-let five year fixes for remortgage will be reduced by up to 16 bps
Green purchase and remortgage deals will drop by up to 15 bps
Residential rates are being cut by TSB, following on from other rates being reduced earlier in the week:
First-time buyer and home mover two-year and five-year fixes to drop by up to 10 bps
Two-year fixed rates for remortgage to drop by up to 15 bps
Product transfer two-year fix at 90% LTV to drop by up to 10 bps
Additional borrowing two-year fix at 80% LTV to drop by up to 10 bps
EHF Mortgages managing director, Justin Moy, argued these further rate cuts show the potential for a “scramble” with high street lenders over the summer as they compete for business with finer margins.
“Though they may be slightly less imminent, lenders believe cuts to the base rate are still on the horizon,” he stated.
“This shows that pricing is not all about the cost of funds. Lenders will also use pricing to manage workloads and may be in a better position to take volume over the coming months.”
