TSB Reduces Mortgage Rates for Existing Customers – What This Means for UK Borrowers

TSB Announces Up to 0.30% Cut on Selected Product Transfer and Additional Borrowing Rates

TSB, one of the UK’s prominent mortgage lenders, has announced a reduction in selected mortgage rates for existing customers. This positive change affects those looking to switch their current TSB deal (product transfers) or seeking additional borrowing on their mortgage. With reductions of up to 0.30% on several fixed-rate products, this update presents an important opportunity for many UK homeowners and landlords to secure lower monthly payments or access funds more affordably.

What’s Changing? – Key Product and Rate Updates

Effective from 29 July, TSB will implement cutbacks across both residential and buy to let mortgage ranges for existing customers. Here’s a breakdown of the main rate reductions:

• Product Transfers – Residential:
  • 1 Year Fixed: reduced by 0.30%
  • 2 Year Fixed (0-60% LTV): reduced by up to 0.25%
  • 2 Year Fixed (60-75% LTV, £0 fee): reduced by 0.05%
  • 2 Year Fixed (75-120% LTV): reduced by up to 0.20%
  • 3 Year Fixed (0-75% LTV): reduced by up to 0.10%
  • 5 Year Fixed (0-90% LTV): reduced by up to 0.15%
• Product Transfers – Buy to Let:
  • 1 Year Fixed: reduced by 0.30%
  • 2 Year Fixed (0-75% LTV): reduced by 0.10%
• Additional Borrowing:
  • Residential 2 and 5 Year Fixed: reduced by up to 0.25%
  • Residential 3 Year Fixed (0-75% LTV): reduced by 0.10%
  • Buy to Let 2 Year Fixed: reduced by 0.10%

For a detailed listing of updated and withdrawn products, applicants are encouraged to review TSB’s product guides online.

Criteria and Features: Who Benefits from These Updates?

These rate reductions are designed exclusively for existing TSB mortgage customers, whether planning a simple product transfer or looking for additional borrowing, such as funding home improvements or consolidating debts.

• Product Transfers: Ideal for TSB customers whose fixed or tracker periods are ending. Applications can be submitted up to three months before the current deal expires (note: early repayment charges may apply if you switch too soon).
• Additional Borrowing: Existing customers can apply for further funds at now-lower rates, suitable for extensions, renovations, or other financial needs linked to their property.
• Buy to Let Landlords: Landlords with TSB mortgages can take advantage of reduced rates when switching their deals or seeking additional buy to let funding.

Noteworthy Lending Features & Flexibility

• Advance Applications: TSB allows customers to arrange their product transfer up to three months before expiry, offering flexibility and peace of mind.
• Smooth Processing: Signed declarations can be uploaded right away to keep completion timelines on track.
• Wide LTV Options: Updates apply to a broad range of loan-to-value (LTV) tiers, covering both lower and higher equity positions.

Why Consider TSB for Your Mortgage Switch or Additional Borrowing?

• Proactive Rate Improvements: TSB consistently reviews its product range, now passing on meaningful cuts during a period of market uncertainty.
• Established Lender: As a well-known high street bank, TSB offers reliability and access to award-winning customer service.
• Existing Customer Focus: These reductions reward loyalty and make it easier for current clients to manage their home finances or unlock property equity.

How to Make the Most of These Changes

If your current TSB mortgage deal is approaching its end, or you’re considering drawing extra funds, reviewing these new rates could help reduce costs or achieve financial plans more swiftly. To explore your eligibility, run comparisons, or apply for a product transfer/additional borrowing, contact our mortgage advice team today for expert, no-obligation guidance tailored to your circumstances.

Don’t miss out – submit any pending applications for withdrawn products before 28 July.

Frequently Asked Questions (FAQ)

• Who qualifies for TSB’s reduced rates?
  These rate cuts apply to existing TSB mortgage holders wishing to switch deals (product transfers) or apply for additional borrowing. New applicants should seek separate options.
• How will the rate reductions impact my repayments?
  Lower fixed rates can reduce your monthly mortgage payment or total interest paid, depending on the size of your loan and fixed period selected.
• Are early repayment charges (ERCs) payable when switching early?
  ERCs may apply if you switch before your current deal ends, but TSB allows you to apply up to three months in advance to help manage the timing.
• What do I do if I want to access these new lower deals?
  Speak with one of our mortgage specialists for a personal review, comparison, and support with your application to ensure you get the best deal available for your needs.
• Are there options for both residential and buy to let properties?
  Yes. TSB’s new rates benefit both residential homeowners and buy to let landlords with an existing TSB mortgage.