TSB is the latest mainstream lender to announce price cuts this week, with rates set to fall by up to 80 basis points on Friday, while HSBC’s cuts of up to 25 basis points come into effect today.
Yesterday, Santander announced interest rate cuts of up to 25 basis points, which also came into effect today.
At TSB the biggest discounts are on buy-to-let deals.
Two- and five-year fixed interest rates for landlords purchasing or remortgaging at 69% loan-to-value will fall by up to 80 basis points.
But some residential products will also see significant cuts.
Three-year fixes for home purchases will fall by up to 60 basis points.
The two-, three- and five-year fixed interest rates for refinancing mortgages will be reduced by up to 50 basis points.
Trinity Financial product and communications director Aaron Strutt said: “The price cuts are still happening, but it won’t last long.
“The costs of financing mortgages have risen again and there are strong suspicions that these new, cheaper fixed interest rates may soon be abolished.
“If you’re on the hunt for a mortgage and are waiting because you think interest rates are going to drop, I would think again.
“Try to book a rate if you’re buying something or if your renewed mortgage is due in the next four or five months.”
Strutt added: “HSBC has announced its latest interest rates and has a two-year rate fix of 4.62% and a five-year rate fix of 4.76%, undercutting Nationwide and Halifax’s two-year rate fix of 4.64%.
“Halifax currently has one of the most competitively priced three-year fixes at 4.73%, as well as a tracker at 3.96%.”
“If you’re not sure whether to take a fixed rate or a tracker rate, some mortgage providers let borrowers take a combination of both.
“Barclays, HSBC, TSB, Skipton and Santander are some of the bigger lenders allowing borrowers to hedge their bets by putting part of the mortgage on a fix and the rest on a tracker.”