TSB has revealed that it will be reducing rates across its residential mortgage range, as well as changing its current mortgage fees. especially for those with larger deposits. For home-movers, first time buyers and those looking to remortgage, TSB will be reducing its rate by as much as 0.2% over 2 year, 5 year and 10 year terms on mortgages at up to 85% loan to value (LTV).
As part of the changes to TSB mortgage fees, the lender’s mortgage account fees have also been dismissed on the bank’s fee-free 10 year remortgage product, however, account fees will now apply to the Fix & Flex Homemover and first-time buyer range instead.
Meanwhile, the lender’s 2 year fixed rate mortgage will now come with an increase of 0.25% with an LTV of 85 to 90% and 0.1% for homebuyers with a 90 or 95% LTV.
While most other lenders’ fees associated with their mortgages currently sit between 1.8% and 2% for fixed rates over 2 years, as well as coming with an arrangement fee of around £1,000, it makes sense for TSB to rid the fee in place of a slightly higher rate in order to hold a competitive position on the current tumultuous market.
TSB isn’t the only lender applying changes to its mortgage rates, as Virgin Money has also applied changes to much of its core residential range, with selected 5 year fixed rates between 65% and 95% LTV witnessing reductions by up to 0.1%, including a market leading 2.24% at 65% LTV for a 5 year fix with a £995 product fee.
Selected 3 year fixed rates between 65% and 95% LTV have also been cut by up to 0.24%, with rates now starting from 1.99% , as well as offering a 3 year fixed rate at 2.24% with a £995 product fee and £300 cashback at 85% LTV.
2 year fixed rates between 70% and 95% have equally been reduced by up to 0.1%, with a 2 year fixed rate of 1.89% at 70% LTV now available with a £995 product fee.