TSB is set to enhance its residential mortgage offerings significantly, with rate reductions reaching up to 0.85% starting Thursday, 1st February.
The lender is introducing competitive rates for its 5-year fixed products tailored for first-time buyers and home movers, featuring loan-to-value ratios between 90-95%, starting at a rate of 4.99%. These products come with no product fees, complimentary basic valuations, and an enticing £500 cashback incentive.
Additionally, TSB is reintroducing its 5-year fixed first-time buyer & home mover products for the 85-90% LTV bracket, accompanied by a £995 fee, and extending product end dates to the end of June.
The rate reductions span across various mortgage products, including a 0.20% cut on 2-year fixed and 3-year fixed options for first-time buyers and home movers, particularly for 90-95% LTVs.
The 5-year fixed rates for both first-time buyers and home movers will see reductions of up to 0.40%, while 5-year fixed Remortgage rates will drop by up to 0.55%.
Furthermore, Shared Ownership products benefit from the most substantial cut of up to 0.85%, with Shared Equity products following closely with up to a 0.60% reduction.
Nick Mendes, mortgage technical manager at John Charcol, said: “While those at the top of best buys have seen margins slim in recent weeks, there is still room for lenders such as TSB to make significant reductions on the product range.
“Some lenders haven’t been as quick to pass reduction in the past few weeks so while this is an improvement, I expect there is still more to come.”
Further reaction
Robert Timm, managing director at Sunland Mortgages Limited:
“With the news of Barclays increasing a portion of their purchase and remortgage range yesterday, it’s welcome to see another well-known lender continue on the path of rate reductions. TSB are rarely at the head of the tables when it comes to having the lowest rates in the market, but sub-5% rates at the high loan-to-value range with no fee are extremely welcome. Hats off TSB.”
Justin Moy, managing director at EHF Mortgages:
“TSB are following many other lenders with enhanced rates for homebuyers, not for remortgages. There is a definite shift of appetite among lenders who are concentrating their efforts on the property market, whilst existing borrowers need to shop around a bit further. Homebuyers will love it, but remortgagors may feel short-changed.”
Gary Bush, financial adviser at MortgageShop.com:
“TSB cutting some of its fixed mortgage rates by up to 0.85% at a time when some lenders are increasing some of theirs is a refreshing stance to take and gives further confidence to financially struggling homeowners and prospective home buyers.
“To also see this lender bringing a lower rate environment to the higher loan-to-value consumers, at 90%-95% loan-to-value is impressive. All kinds of mortgage customers need to see lower rates at this difficult time, not just those with big deposits of sizeable equity. Well done TSB.”
Rohit Kohli, director at The Mortgage Stop:
“It’s good to see in a week where everyone is waiting on Threadneedle Street that major lenders like TSB continue to drive borrowing costs down for those looking to purchase. It underpins the premise that lenders want to lend and are doing what they can to push sales.
“It should be noted though that TSB are yet another lender this week that’s starting to create a significant price differential between its purchase products and those looking to remortgage which is a worrying sign to the millions coming off their ultra-low fixed rate this year.”
Emma Sadler, senior mortgage broker at JB Mortgages:
“Further positive news from a lender who I have always found to be easy to deal with. The outlook so far this year, across the whole mortgage market, is great. The lenders seem to be taking an objective view when reviewing their products and this is supporting the overall goal of helping consumers to get a foot on the property ladder.”
Ben Perks, managing director at Orchard Financial Advisers:
“The last few emails I’ve had from Lenders have seen rates going the other way, so this was a welcome read. TSB has made some modest reductions to shorter-term products and the reductions improve the longer the fixed period or if it’s a shared equity or ownership.
“With the volatility of rates at the moment it is important to secure rates when you can as long as you are able to review and modify, at no cost. Or better yet seek advice from a qualified professional who will do this for you.”
Simon Bridgland, broker/director at Release Freedom:
“The new residential rates on offer, although bringing themselves closer to other lender’s offerings, still do not set the world alight. Just like its competitors, TSB are increasing the rates on their remortgage offerings to seemingly balance their exposure to risk.
“TSB’s buy-to-let products are looking attractive as they haven’t gone down the route of charging eyewatering fees compared to many others in this field. Although they are not offering free legals they are giving away cashbacks to help these remortgage clients with their costs.”
Akhil Mair, director at Our Mortgage Broker:
“A great start to a Wednesday with TSB’s announcement of significant improvements to its Residential range, including rate reductions up to 0.85%, is truly uplifting.
“The new rates, especially the 5-year fixed options for first-time buyers and home movers at 90-95% LTV starting at 4.99% with £0 product fee, a free basic valuation, and £500 cashback, offer great opportunities for homebuyers.
“It’s wonderful to see TSB making strides to support buyers in achieving their homeownership dreams, More could be mentioned about certain lenders altering their criteria in recent days.”
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