TSB Announces Further Residential Mortgage Rate Reductions and New Fixed-Rate Products for UK Borrowers

Latest Update: TSB Cuts Mortgage Rates and Expands Residential Product Range

TSB, one of the leading UK mortgage lenders, has introduced new rate reductions and launched additional fixed-rate products across its Residential range, including significant options for first-time buyers and those with lower deposits. These updates, effective from 23 July 2025, aim to provide competitive borrowing opportunities for both house purchasers and those considering Shared Ownership schemes.

Key Mortgage Rate Reductions and New Product Launches

• New Product Introductions:
  • 2 and 5 Year Fixed Rate House Purchase products at 90-95% loan-to-value (LTV), with a £995 fee.
  • New 2 and 5 Year Fixed Shared Ownership House Purchase products at 90-95% LTV, also with a £995 fee.
• Rate Reductions:
  • Selected 2, 3, and 5 Year Fixed House Purchase mortgages (with £995 fee): up to 0.10% reduction.
  • 2 and 3 Year Fixed House Purchase at 85-90% LTV & £0 fee: reduced by 0.05%.
  • 5 Year Fixed House Purchase at 60-75% and 85-90% LTV & £0 fee: reduced by up to 0.10%.
  • 2 and 5 Year Fixed Shared Equity and Shared Ownership House Purchase: rates cut by up to 0.15%.

Who Benefits from TSB’s Changes?

These updates primarily benefit:

• First-time buyers seeking higher LTV mortgages (up to 95%), including Shared Ownership options.
• Home movers looking for fixed-rate security on their next property purchase.
• Borrowers wanting affordable options with minimal upfront fees or competitive rates for higher LTV lending.

Shared Equity and Shared Ownership products are particularly useful for buyers with modest deposits or those leveraging government support schemes.

Criteria Highlights: What Makes TSB Products Attractive?

• Maximum loan-to-value up to 95% for houses and bungalows—including new builds—broadening access for buyers with small deposits.
• Free basic valuations included on all mortgage applications, reducing upfront costs.
• Wide range of term lengths and LTV bands, supporting tailored solutions for various property types and borrower profiles.

Special Features and Current Promotions

• Newly introduced high LTV fixed-rate options (up to 95% LTV), aiding first-time buyers and low-deposit borrowers.
• Reduced interest rates across core fixed-rate terms, supporting affordability amid market volatility.
• Streamlined application support and online resources available for quick product amendments and guidance.

Why Choose TSB for Your Next Mortgage?

• Competitive, newly reduced fixed rates targeting the 90–95% LTV band, ideal for buyers with smaller deposits.
• Flexible range now covering both standard residential and Shared Ownership borrowers.
• Inclusive policy for new builds and straightforward fee structure (£995 option or fee-free choices).
• Enhanced accessibility through dedicated broker support and robust digital tools.

Ready to Discuss Your Options?

If you’re considering a new mortgage, shared ownership, or a home move and want expert, independent advice tailored to your situation, get in touch with our UK mortgage brokerage team. Our advisers are here to help you identify the best TSB product for your needs and manage your application from start to finish.

Contact us today for up-to-date information, personalised rates, and guidance on qualifying for TSB’s latest offers.

Frequently Asked Questions (FAQ)

• Who is eligible for TSB’s new 90–95% LTV fixed-rate mortgages?
  These products are open to residential house and bungalow buyers, including first-time buyers and those using Shared Ownership, provided they meet standard affordability and credit criteria.
• How will these rate reductions affect my monthly mortgage payments?
  Lower interest rates generally reduce monthly repayments, making borrowing more affordable. The exact impact depends on loan size, term, and new rate.
• Can existing TSB applicants benefit from the new rates?
  Only new applications from 23 July 2025 onward will qualify. Those with applications in progress may need to resubmit to access updated terms.
• Is TSB a good option for buyers with smaller deposits?
  Yes. With up to 95% LTV and a track record on affordable lending, TSB remains a leading choice for those with modest deposits or requiring shared-ownership support.
• How do I check my eligibility or apply for these TSB mortgage products?
  Contact our advisers or start an online enquiry to get a full assessment and personalised product recommendation.