TSB Mortgage Rate Increases on Selected Product Transfer and Additional Borrowing – September 2025 Update

TSB Mortgage Rate Changes: What UK Borrowers Need to Know

TSB Bank has announced a series of rate increases across specific Product Transfer and Additional Borrowing mortgage ranges, effective from 24 September 2025. If you’re a homeowner considering a product switch or looking for additional borrowing with TSB, understanding these updates is crucial for planning your next steps and securing the most suitable deal.

Details of the TSB Rate Increases

From Wednesday 24 September, TSB will implement the following changes to its mortgage products:

• Product Transfer Mortgages:
  • Residential 2-Year Fixed, 0-60% Loan-to-Value (LTV) £0 Fee: Rate increase by 0.10%
  • Residential 2-Year Fixed, 60-90% LTV: Rate increase by up to 0.10%
• Additional Borrowing Mortgages:
  • Residential 2-Year Fixed, 0-80% LTV: Rate increase by up to 0.10%

If you are in the process of making an application for any of these products, you must submit your application by the end of Tuesday 23 September to secure current rates. Post this date, these mortgage deals will be withdrawn and replaced with higher interest rates.

Impact of the Rate Changes

These increases impact borrowers seeking to remortgage or undertake a product transfer with TSB, as well as those interested in borrowing additional funds against their home.

• Customers close to the end of their initial fixed-rate period may see slightly higher monthly repayments if switching after 23 September 2025.
• The changes particularly affect homeowners with medium to high LTV ratios considering fixed-rate security.
• First-time buyers are unaffected, as this update relates to existing mortgage customers and further borrowing.

TSB Lending Criteria and Policy Highlights

Alongside the rate changes, TSB continues to offer notable criteria and borrower-friendly features, including:

• Full Early Repayment Charge (ERC) waiver when porting: If you move your mortgage to a new property, TSB offers a full ERC waiver—even if your new loan amount is lower than your previous loan.
• Bonus Income Flexibility: TSB allows up to 60% of your latest bonus to be considered for affordability calculations, supporting applicants with variable or performance-based pay.

These features make TSB particularly appealing to applicants with changing circumstances or those with irregular income patterns, such as professionals in sales, finance, or management roles.

Why Consider TSB for Your Mortgage Needs?

• Flexible porting and ERC waiver options for existing borrowers changing homes.
• Generous bonus income criteria, supporting higher borrowing potential for many professionals.
• Strong product transfer and additional borrowing options for existing customers looking to secure their next fixed-rate period or fund home improvements.
• Comprehensive customer support and access to expert mortgage advisers.

Next Steps: Secure the Right TSB Deal or Explore Alternatives

If you’re considering a TSB product transfer or additional borrowing, act quickly to lock in your existing rates before the 23 September deadline. Unsure how these changes affect you specifically? Contact our expert mortgage advice team for personalised support. We’ll help you review your circumstances, advise on the best rates available across the UK market, and guide you through your application.

Ready to discuss your options? Reach out now to secure the best possible deal, whether with TSB or an alternative lender.

FAQs: TSB Rate Increase – September 2025

• Who is affected by TSB’s latest rate increases?These changes affect existing customers looking to switch to a new TSB mortgage deal (product transfer) or borrow additional funds on their mortgage.
• What happens if I apply after 23 September?Applications submitted after 23 September will only be eligible for the new, higher rates. To secure current rates, apply before the deadline.
• Does the rate increase apply to new purchase mortgages or first-time buyers?No. This update only impacts product transfers and additional borrowing for existing TSB mortgage holders.
• What does the ERC waiver mean in practice?If you port your mortgage to a new property, you can do so without paying early repayment charges—even if your new mortgage is for less than your original loan.
• How do I find out if TSB remains the best option for me after these changes?Speak with a qualified mortgage adviser. They can compare current offers from TSB and other UK lenders to ensure you get the most competitive and suitable deal for your needs.