TSB has released some refreshed rate changes across its range of mortgages today, including reductions in residential further borrowing mortgages, as part of the lender’s strategy to improve affordability and meet customers’ evolving needs. Here is what you need to know.
What’s New
Residential Fixed & Remortgage Rates (all up):
- 2, 3 and 5-Year Fixed House Purchase (0–90 % LTV): up by up to 0.15 %
- 2-Year Fixed Remortgage (0–75 % LTV): up 0.05 %
- 3-Year Fixed Remortgage (60–75 % LTV): up 0.10 %
- 5-Year Fixed Remortgage (60–85 % LTV): up 0.05 %
- Shared Equity / Shared Ownership House Purchase (2 & 5-Year, 0–90 % LTV): up to 0.15 %
- Shared Equity Remortgage (2 Year, 0–75 % LTV): up 0.10 %
Buy-to-Let Remortgages:
2 & 5-Year Fixed Remortgage (0–75 % LTV): up 0.10 %
Product Transfer Rates (all down):
- 2 Year Fixed (60–120 % LTV, £995/£0 fee): down up to 0.25 %
- 3 Year Fixed (0–60 %, £1,495/£995 fee): down 0.05 %
- 3 Year Fixed (60–80 % LTV): down 0.05
- 5 Year Fixed (60–75 % LTV): down 0.05 %
Additional Borrowing (Residential) (rate reductions):
- 2 & 3 Year Fixed (60–80 % LTV): down up to 0.15 %
- 5 Year Fixed (60–75 % LTV): down 0.05 %
What Are Extra Borrowing Mortgages & Why the Reduction is Important
Extra borrowing mortgages allow existing borrowers to add a mortgage from their current lender and without remortgaging. Home improvement, debt consolidation, or to cover significant costs are typical uses for it. It’s simple, keeps the original terms of the mortgage, and adds a standalone borrowing sub-account.
With the cuts today, up to 0.15% cut on fixed rates for 2 and 3-year residential additional borrowing mortgages, TSB is making additional equity more affordable for homeowners to tap into, making it easier to afford throughout the property term.
Why These Rate Cuts Matter
Higher Affordability: Lowered interest saves the borrower in the long run, lowering monthly payments or overall cost.
Greater Access to Funds: Encourages homeowners to consider additional borrowing when renovating, consolidating debts, or managing life costs.
Strategic Product Positioning: As other rates rise, borrowers may see additional borrowing as a flexible, lower-cost alternative.
How Oportfolio Mortgages Can Help You
Clarifying Options: We’ll explain whether additional borrowing suits your goals, whether for home improvements, debt consolidation, or flexibility.
Steering Criteria: Lender rules on affordability, eligibility and maximum LTV might be tricky. We simplify them.
Getting the Cheapest Way: From full remortgage versus extra borrowing, we will take you to the lowest cost route.
Paperwork Administration: We minimise your application hassle, negotiate with TSB, and take care of paperwork so you won’t have to.
TSB’s Additional Borrowing Mortgage Rate Cut FAQs
Q: What is Additional Borrowing
A: It’s extra borrowing on your existing mortgage from the same bank, added as a separate sub-account, no need to remortgage.
Q: What are TSB’s new rate reductions?
A: Residential additional borrowing rates:
2 & 3-Year Fixed (60–80 % LTV): cut by up to 0.15 %
5-Year Fixed (60–75 % LTV): cut by 0.05 %
Q: How much could I save?
A: Savings depend on how much you borrow and for how long. On a £100,000 further borrowing for two years, a 0.15% cut saves around £300 interest.
Q: Am I eligible?
A: Eligibility typically is being a UK resident, up to date with Direct Debits, and meeting TSB’s affordability and LTV criteria for the facility of further borrowing.
Q: Should I remortgage or use additional borrowing?
A: It’s all about your overall mortgage stance, differences in rates, fees, and objectives. We are able to suggest what direction is ideal for you.
Speak to a Mortgage Adviser Today
Rate reductions today on TSB’s further borrowing mortgages, especially on 2- and 3-year periods, are a timely and substantial opportunity for home owners. Whether you are improving your home, paying off debt, or want some additional funds, these savings make further borrowing a more desirable option than ever. Speak with Oportfolio Mortgages for specialist advice tailored to your needs. We’ll explore if using other borrowing with TSB will cut costs and provide the freedom you need.
