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TSB is also increasing its two-year fixed-rate deal for residential remortgage for borrowers with up to 25percent equity in their home by 0.2 percentage points to 4.74percent, effective from 9 February. The bank’s lowest two-year rate for remortgage will be at 4.49percent with a 1,495 fee and the equivalent five-year deal is still just below 4percent at 3.99percent, also with a 1,495 fee. The cost of borrowing for banks in the wholesale markets has been gradually creeping upwards over recent weeks, fuelled by more negative economic news and stubbornly high inflation data.

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TSB is cutting rates across its product transfer and additional borrowing mortgages by as much as 0.65 percentage points. It is offering a five-year fix for product transfer at 3.89percent (60percent LTV) with a 995 fee. The mutual is offering a five-year fixed rate for residential customers at 4.99percent (60percent LTV) with a 999 fee but it has withdrawn all two-year fixes. The five-year fix for buy-to-let landlords starts from 5.84percent (60percent LTV) with a 999 fee.

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The lender’s maximum loan size on selected residential fixed rates will also increase from 570,000 to 1 million at 90percent loan to value. But while a range of deals will see a rate rise from tomorrow, Barclays has also cut the rates on two of its five-year fixed rate purchase deals at 85percent loan to value. The deal with a 999 product fee falls from 4.78percent to 4.73percent, while the fee-free equivalent deal has been cut from 4.95percent to 4.9percent.

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