TSB Rate Changes: New Fixed Mortgage Deals for House Purchase, Remortgage, and Shared Ownership (Sept 2025)

TSB Announces Changes Across Residential and Affordable Housing Mortgages

TSB Bank has unveiled important updates to its residential and affordable housing mortgage product ranges, effective from 25 September 2025. These changes include both rate increases and reductions for various fixed-rate deals, impacting house purchasers, remortgage clients, and those using shared ownership schemes. Understanding these latest updates can help you find the best mortgage deal for your circumstance.

TSB Mortgage Rate Updates: What’s New?

The latest TSB update introduces the following adjustments to their residential mortgage rates:

• 2 Year Fixed Remortgage (60-75% LTV): Rate increased by 0.05%
• 3 Year Fixed House Purchase (75-90% LTV): Rate reduced by up to 0.10%
• 5 Year Fixed House Purchase (85-90% LTV): Rate reduced by 0.15%
• 2 Year Fixed Remortgage (85-90% LTV): Rate reduced by 0.15%

For affordable housing:

• 5 Year Fixed Shared Ownership & Shared Equity House Purchase (85-90% LTV): Rate reduced by 0.15%

These changes may make TSB’s fixed mortgage products more competitive, especially for buyers and remortgagers in higher loan-to-value (LTV) brackets or using government-backed affordable home schemes.

Updated Lending Policy Highlights from TSB

• Affordability: 60% of the latest bonus income is accepted in affordability assessments.
• Lending into Retirement: Applicants can borrow up to age 75 without providing future pension income evidence, provided they have at least 10 years until planned retirement and current pension contributions are evidenced.

These criteria create flexibility for borrowers with variable income or those planning to borrow later into life, making TSB an attractive choice for a wider range of applicants.

Who Benefits Most from These TSB Changes?

• Home Buyers (75-90% LTV): Reduced fixed rates over three and five years offer lower monthly costs and longer-term certainty for borrowers with smaller deposits.
• Remortgage Applicants (85-90% LTV): Reduced fixed remortgage rates can support those looking to switch and save, even with higher loan-to-value ratios.
• Shared Ownership and Equity Buyers: Lower five-year fixed rates help make affordable home schemes more accessible by reducing monthly payments and improving affordability calculations.
• Borrowers with Bonus Income or Planning Late Retirement: TSB’s flexible lending criteria support applicants dependent on variable pay or considering borrowing into retirement age.

Why Consider TSB for Your Next UK Mortgage?

• Competitive Pricing: Reduced rates for higher LTV products, particularly in longer fixed-term options.
• Flexible Criteria: Acceptance of bonus income and lending into retirement without strict pension proof (subject to criteria).
• Broad Range: Products designed for home purchase, remortgage, shared ownership, and shared equity scenarios.
• Trusted UK Lender: TSB is an established high street bank with regulated, customer-focused service.

These strengths make TSB’s mortgage offerings especially appealing for first-time buyers, those moving home, and anyone remortgaging at higher LTVs in the UK.

What Should Borrowers Do Next?

If you’re interested in TSB’s updated mortgage offers or want to see how these rate and criteria changes affect you, contact our expert mortgage brokerage team today. We provide impartial advice tailored to your needs, guiding you through every step of your application and ensuring you access the best possible mortgage rates and products for your circumstances.

Contact us for:

• Advice on eligibility for TSB or other leading UK lenders
• Comparisons against the latest best-buy mortgage rates
• Understanding policy criteria and which lender suits your plans best

Get in touch now and take the next step towards your new mortgage!

FAQs: TSB Mortgage Rate Changes – September 2025

• Who qualifies for the new reduced TSB rates?
  Borrowers meeting deposit and LTV requirements for house purchase, remortgage, or shared ownership, as well as those with bonus income or looking to borrow into retirement (subject to criteria).
• How will these rate changes affect my repayment?
  Reduced fixed rates mean lower monthly payments on affected products, while buyers on 60-75% LTV remortgage deals may see a slight increase.
• Are TSB’s criteria suitable for borrowers with bonus income?
  Yes. TSB includes 60% of your latest bonus when calculating affordability for mortgage applications.
• Can I borrow into retirement with TSB?
  Yes. Lending up to age 75 is possible without demanding detailed future pension evidence if you have more than 10 years until you retire, but current pension contributions are required.
• How can I apply or check eligibility for these new TSB mortgage deals?
  Contact our experienced mortgage advisers to assess your options, check eligibility, and receive support with your application for any UK mortgage lender.