Rate increase for TSB residential mortgages

As borrowers brace themselves for the year ahead, TSB is one of few lenders showing signs of adjusting its residential mortgage rates with increases on selected short and medium term mortgages in line with recent movements in the market.

Affecting a selected range of fixed and tracker rate remortgages, TSB’s 2 year fixed rate mortgage will increase by 0.05% for homebuyers with a loan to value (LTV) of 0-60% and 0.15% for homebuyers with a LTV of 60-90%. An increase of up to 0.11% will be placed on 2 year homebuyer mortgages with a 90-95% LTV.

Homebuyers who opt for 2 year tracker mortgages will see an increase of 0.05% with a 0-60% LTV, and 0.15% for a LTV of 60-85%. Homebuyers looking for a 5 year fixed mortgage with a LTV of 0-75% will also see an increase of 0.1%.

Borrowers seeking a 2 year fixed rate remortgage deal will see an increase of 0.1% with a LTV of 0-60%, as well as increases of up to 0.2% for homeowners with a LTV range of 60-85%. TSB’s 2 year tracker for remortgages, on the other hand, will increase by 0.1% for homeowners with a LTV of 0-60% and by up to 0.2% for those with a 60-85% LTV.

Finally, 5 year fixed remortgage products with LTVs of 0-75% will additionally see an increase of 0.1%.

As 72% of homeowners are likely to see their mortgage payments increase if the base rate rises, almost half are planning to remortgage in preparation, especially as lenders like TSB are already creeping rates up accordingly. Despite this, alternative figures have shown that the majority of high LTV mortgage rates are continuing to fall, with greater variation when it comes to individual LTVs still available.

The average 95% LTV saw the greatest reduction of 0.04% to stand at 4.28%, while the average 90% and 85% LTV both fell by 0.03% to 3.08% and 2.58% respectively, with the average rate at 80% LTV seeing the smallest reduction of 0.01% to 2.38%.

Either way, one thing is clear; the mortgage market remains unsettled as far as rates are concerned, as both borrowers and lenders alike brace themselves for a potential rate rise in the coming months.

Arrange to speak to an Enness Broker