TSB Reduces Selected Residential Mortgage Rates: Latest Updates for UK Borrowers

Introduction: TSB Announces Residential Rate Reductions

TSB has announced fresh reductions to selected residential mortgage rates, effective from Friday 22 August. These changes apply across a variety of fixed-rate and shared ownership products, aiming to support UK homebuyers and remortgage applicants with improved affordability. If you’re considering a new purchase, remortgage, or shared ownership solution, understanding these updates can help you secure some of the best mortgage rates UK lenders currently offer.

Details of the New Mortgage Rate Reductions

The following TSB products have seen interest rate cuts, improving their competitiveness in today’s UK market:

• 2 Year Fixed House Purchase (85-90% LTV): Reduced by 0.05% – ideal for homebuyers with smaller deposits.
• 2 Year Fixed Remortgage (0-75% LTV, £1,495 and £995 fee options): Cut by 0.05% – for homeowners seeking better remortgage rates UK-wide.
• 2 Year Fixed Remortgage (75-85% LTV, £995 fee): Reduced by 0.05%.
• 3 Year Fixed Remortgage (75-85% LTV): Rate lowered by 0.05%.
• 2 Year Fixed Shared Ownership/Shared Equity Purchase (85-90% LTV): Cut by 0.05% – appealing to those stepping onto the property ladder via shared ownership schemes.
• 5 Year Fixed Shared Ownership/Shared Equity Purchase (75-95% LTV): Reduced by up to 0.15% – providing more security for shared ownership buyers.
• 2 Year Fixed Shared Ownership/Shared Equity Remortgage: Lowered by up to 0.30% – valuable for those seeking specialist lending UK options.

Alongside these rate changes, product end dates are being extended to the end of December, providing more flexibility on deal completion timelines.

Criteria and Policy Updates: Who Benefits?

TSB continues to offer products designed to include a broad range of borrowers. Key lending criteria include:

• New Build Support: Borrow up to 95% LTV on houses and 85% LTV on flats/maisonettes.
• Flexible Deposits: Family gifted deposits are accepted and paperwork can be completed digitally, making the process easier for first-time buyer mortgages UK-wide.
• Shared Ownership and Equity Options: Specialist products for buyers using government or housing association schemes.

These inclusive criteria are beneficial for:

• First-time buyers with modest deposits
• Homeowners looking to remortgage at lower fixed rates
• Those investing in new builds or shared ownership schemes

Promotions and Unique Features

While TSB’s current updates do not include explicit fee waivers or cashback offers, borrowers benefit from:

• Regular rate monitoring and reductions, ensuring you can access some of the most competitive fixed-rate mortgages in the UK.
• Digital-friendly processes for gifted deposits, saving you time and paperwork stress.
• Specialist lending for shared ownership and equity, often overlooked by mainstream lenders.

Why Consider TSB for Your Next Mortgage?

TSB is renowned among UK mortgage lenders for its:

• Consistently competitive and frequently updated mortgage rates
• Support for non-standard and first-time buyer scenarios
• Ease of application, with digital services for gifted deposits
• Clear, straightforward lending criteria that help more borrowers qualify

These factors make TSB an attractive option, especially if you’re seeking a flexible, customer-focused lender with a strong range of fixed- and specialist mortgages.

Take Your Next Step: Expert Mortgage Advice UK

If you’re considering a move, remortgage, or are interested in shared ownership, now is an excellent time to explore your options. Contact our fully qualified mortgage advisers today for impartial, up-to-date advice on the best TSB mortgage rates and products for your needs.

• Phone: 02392 006428
• Best Buy Tables: See current fixed and tracker rate best buys

Frequently Asked Questions (FAQ)

• Who is eligible for the reduced TSB mortgage rates?UK residents, including first-time buyers, movers, and those remortgaging, can apply (subject to standard affordability checks and lending criteria).
• How could these rate changes affect my monthly payments?Lower rates could reduce your monthly repayments, especially if you’re remortgaging from a higher-rate deal.
• Does TSB support shared ownership and gifted deposits?Yes, borrowers using shared ownership/equity or receiving family gifted deposits are welcomed and benefit from dedicated product ranges.
• How do I apply or find out if I qualify for these products?Get in touch with our advisers for a free eligibility check and full application support.
• When do these new rates take effect?TSB’s new rates are live from Friday 22 August. Existing product applications must be submitted by end of Thursday 21 August.