Mortgage rates: TSB slashes fixed-rate offers ahead of Bank of England announcement
TSB has slashed its two and five-year fixed rate mortgage offers
PA
High street bank TSB has slashed its two and five-year fixed rate mortgage offers, despite the Bank of England being poised to hike the base rate of interest later this month.
In changes that came into force at the end of last week, the lender has cut its two and five-year fixed house purchase rates by up to 0.15 per cent.
The changes include its two-year fixed rate with £995 fee, which has been dropped from 4.64 per cent to 4.49 per cent.
At the same time, its five-year fixed rate with the same fee has decreased from 4.44 per cent to 4.29 per cent.
TSB has made the changes for both residential and buy-to-let mortgages
PAFor those taking out buy-to-let mortgages, rates have been reduced by up to 0.2 per cent up to 75 per cent LTV.
The drops are in contrast with much of the market, which has slowly been increasing its repayment rates over recent months.
Rises across the sector have been made in response to the Bank of England's (BoE) base rate of interest.
Interest rates currently sit at 4.25 per cent - after 11 rises since December 2021 when Bank rate stood at just 0.1 per cent.
Despite the current Bank rate being at its highest level since 2008, a further increase is being anticipated for alter this month.
The BoE's monetary policy committee will meet on May 11 to determine whether to hike up the current level of interest.
The group is tasked with brining inflation down from its current level of 10.1 per cent to just two per cent.
It has been increasing interest rates in order to help curb spending to try and bring down the inflation figure.
Last week Goldman Sachs said it was anticipating the BoE's interest rate rises would peak at five per cent in September.
It suggested there was a 90 per cent chance on an increase to 4.5 per cent on May 11.