TSB Increases Residential and Affordable Housing Fixed Mortgage Rates – Key Changes for Homebuyers & Remortgagers

TSB Adjusts Select Residential and Affordable Housing Mortgage Rates

TSB, one of the leading UK mortgage lenders, has announced rate increases across selected residential and affordable housing fixed-rate mortgage products.

Effective from 18 September 2025, these selected rate increases will mainly affect homebuyers and remortgagers with higher loan-to-value (LTV) requirements — particularly those seeking 90-95% LTV on house purchase, shared ownership, and shared equity products.

Here’s what you need to know about these upcoming changes and how they may affect your mortgage plans.

Mortgage Rate & Product Updates: Key Changes from 18 September 2025

• Residential Fixed-Rate Mortgages:
  • 2, 3, and 5 year fixed house purchase deals at 90-95% LTV will see rate increases of up to 0.15%.
• Affordable Housing Mortgages:
  • 2 and 5 year fixed shared ownership and shared equity house purchase products at 90-95% LTV will increase by up to 0.15%.

These changes mean slightly higher monthly payments for new applicants seeking high loan-to-value mortgages from TSB from 18 September onwards. If you are considering one of the affected products, ensure your application is submitted by the end of 17 September 2025 to lock in current rates.

Full details of withdrawn and updated products are available directly on the TSB Intermediaries website.

Criteria & Policy Highlights: Who Benefits from TSB’s Proposition?

• Maximum 95% LTV available on customer share for Shared Ownership house and bungalow purchases.
• Term flexibility: Up to 40 year mortgage terms allowed (ending by a maximum age of 75), provided you can evidence an active pension contribution.

These policies are especially relevant for:

• First-time buyers with smaller deposits (as low as 5%).
• Those buying through Shared Ownership or Shared Equity schemes.
• Borrowers needing longer mortgage terms to reduce monthly payments or fit affordability.

TSB’s lending criteria continue to offer flexibility for those with lower deposits or seeking accessible routes onto the property ladder.

Are There Any Promotions or Unique Features?

While there are no explicit promotions included in this update, TSB continues to stand out with:

• Up to 95% LTV for both standard and affordable housing schemes.
• Long mortgage terms for improved affordability.
• User-friendly application support and detailed broker guidance.

Borrowers interested in shared ownership or shared equity often find TSB’s criteria accommodating compared to some other high street competitors.

Why Choose TSB for Your Mortgage?

• Strong track record for first-time buyers and home movers with small deposits.
• Dedicated support and clear guidance for complex applications.
• Flexibility with maximum 95% LTV and long mortgage terms.
• Competitive fixed-rate options, even after the modest rate increases.

Whether you’re a first-time buyer or seeking a shared ownership deal, TSB remains a popular choice for those needing a higher LTV and flexible lending terms.

Conclusion

If you are considering a fixed-rate mortgage with TSB, especially at 90-95% LTV, act fast to submit your application before 17 September 2025 to secure current rates. For tailored advice on how these changes may impact you, or to explore suitable alternatives, contact our broker team for free, expert mortgage guidance today.

FAQs: TSB Residential Mortgage Updates

• Who will be affected by the TSB rate increases?
  TSB’s increases impact new residential, shared ownership, and shared equity applicants with 90-95% LTV, starting from 18 September 2025.
• How much are the new rate increases?
  Fixed-rate deals for house purchase, shared ownership, and shared equity at 90-95% LTV will rise by up to 0.15%.
• Is TSB still a good option for first-time buyers or shared ownership?
  Yes—TSB continues to offer up to 95% LTV mortgages and accepts long terms up to 40 years with proof of pension contributions.
• How can I apply or secure a current rate?
  Submit your full mortgage application before close of business on 17 September 2025 to lock in existing rates.
• Does TSB have flexible lending criteria?
  Yes—TSB offers generous maximum LTVs, long terms, and accessibility for those using affordable housing schemes.