TSB is implementing significant mortgage rate hikes.
- Residential and buy-to-let mortgages will see increases.
- Rates rise by up to 0.30% for shared ownership products.
- Existing customers face higher rates on fixed options.
- Changes are due to increased demand in the rental sector.
TSB has announced it will be raising interest rates across a range of its mortgage products effective from Friday, 15 November. This decision impacts both residential and buy-to-let mortgages, including product transfers and additional borrowing options. The increase in rates reflects the growing demand in the rental market and aims to align with current economic conditions.
Residential mortgage holders will experience a rate hike of up to 0.20% on 3-year fixed products intended for first-time buyers and home movers. Remortgage customers with loan-to-value ratios between 0% and 75% will also be subject to a similar increase. Selected shared ownership and shared equity products are set to see even higher rate increases, reaching up to 0.30%.
Within the buy-to-let sector, TSB is increasing rates by 0.30% for customers securing 2- or 5-year fixed loans for house purchases. Those remortgaging at loan-to-value ratios up to 75% will similarly face a rate hike. These adjustments apply to both new purchase and remortgage applications, as TSB responds to heightened demand within the rental sector.
Existing TSB customers looking to transfer their mortgages will see rates rise by 0.10% on residential 2-, 3-, and 5-year fixed options up to 75% loan-to-value. Buy-to-let customers on a 5-year fixed product transfer plan, within a 60% to 75% loan-to-value range, will also encounter a 0.10% increase. Additional borrowing products are not exempt from these changes, with both residential and buy-to-let fixed-rate options seeing a 0.10% increase on selected terms.
These rate adjustments by TSB reflect ongoing challenges in the mortgage market.
