TSB Landlord Mortgage Rates Raised

by | Wednesday 24th Apr 2024 | Mortgage News

Landlord mortgage rates increased by TSB

Landlord mortgage rates increased by TSB

In a message released this morning, and following in suit with other UK mortgage lenders, TSB has announced significant changes to its mortgage rates, affecting both residential homeowners and buy-to-let landlords. The bank revealed plans to withdraw certain mortgage products while increasing landlord mortgage rates on others, with increases as high as 0.75%. In this article we will explore what these specific changes are and how they could impact the UK property market.

TSB Landlord Mortgage Rates Raised

On the buy-to-let front, TSB is discontinuing specific tracker and fixed-rate products, while increasing landlord mortgage rates by up to 0.45%. For residential mortgages, TSB is pulling back on 2-year tracker products for first-time buyers, home movers, and remortgages. Concurrently, rates on various fixed-rate mortgages for the same categories are set to rise by up to 0.35%. Shared ownership and equity products will also face hikes of up to 0.75%.

The Bank Of England Base Rate And Rate Increases

These changes come amidst growing anticipation regarding the Bank of England’s forthcoming decision on the base interest rate. Recent predictions suggest that the bank will maintain the rate at 5.25% in May 2024, defying hopes for a reduction. With the bank’s Monetary Policy Committee predictably not wanting to ‘get ahead of themselves’ by dropping rates prematurely. This forecast has undoubtedly influenced TSB’s adjustments and is likely to impact the broader mortgage landscape with other lenders increasing their rates too over the last few days.

What Are The Implications Of Rate Increases?

The implications of TSB’s rate increases extend beyond individual homeowners. Buy-to-let landlords, in particular, may find themselves facing tougher financial conditions. With higher mortgage rates eating into rental yields, profitability could take a hit, potentially deterring future investment in the sector. Also, increased borrowing costs could lead to rental price adjustments, affecting tenants’ affordability.

Speak To A Buy-To-Let Mortgage Specialist

So what can be done if your landlord mortgage rates increase? Landlords are advised to seek guidance from specialists in buy-to-let mortgages. Companies like ourselves at Oportfolio Mortgages offer tailored advice and access to a range of products suited to individual needs and circumstances. By consulting experts in the field, landlords can get the best out of their property investment, even if rates increase.

As TSB’s rate adjustments clearly signal a broader trend in the mortgage market, homeowners and landlords alike must stay vigilant and proactive in managing their finances. Whether considering a new purchase or reviewing existing arrangements, seeking professional advice is paramount in securing favourable terms amidst changing economic conditions. Call or email our team today to arrange a fee free initial mortgage consultation. We are here to help.

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If you have any questions about UK mortgage news or or anything you’ve read then please get in touch. We’d love to hear from you.

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