TSB Unveils New 3-Year Fixed Rate Mortgage at 4.99% Interest

by | Thursday 19th Oct 2023 | Mortgage News

In a move that promises to provide much-needed relief for homebuyers and existing mortgage customers, TSB has announced a series of rate reductions on its mortgage products, effective from this Friday. This includes the launch of an attractive 3-Year Fixed Rate Mortgage at 4.99% for First Time Buyers and Home Movers. The rate reductions are designed to offer stability and affordability for borrowers in the short to medium term. In this blog we will go through these changes and what the impact will be.

Key Highlights Including New 3-Year Fixed Rate

New 3-Year Fixed Rate at 4.99%: TSB’s latest offering is a 3-Year Fixed Rate Mortgage at a competitive 4.99% interest rate. This is expected to be a significant draw for First Time Buyers and Home Movers, providing them with financial stability and predictability over a three-year period. Most mortgage product available on the market start with at least a 5 and many are still at 6% or more.

Cashback for Smaller Deposits: Borrowers with smaller deposits will also benefit from TSB’s commitment to making homeownership more accessible. All House Purchase products above 85% Loan to Value (LTV) will come with a £500 cashback, which will help mitigate some of the costs associated with moving into a new home, such as moving costs and solicitors fees.

General Rate Reductions Across the Board: TSB is not only introducing new mortgage products but is also slashing rates across its existing offerings. Here are a few of the highlights from the recent rate reductions:

Residential Mortgages:

– 2-Year Fixed House Purchase and Remortgage rates will be reduced by up to 0.50%.

– 3-Year Fixed House Purchase rates will see a reduction of up to 0.30%.

– 3-Year Fixed Remortgage rates, for LTVs of 0-75%, will experience a rate reduction of 0.30%.

Product Transfer Mortgages:

– Rates for Residential 2-Year Fixed mortgages will be reduced by up to 0.50%.

– Residential 3-Year Fixed mortgages, with LTVs of 0-80%, will see rate reductions of up to 0.45%.

Additional Borrowing Mortgages:

– Residential 2-Year Fixed rates will be reduced by up to 0.50%.

– Residential 3-Year Fixed rates will experience a reduction of up to 0.45%.

The Impact on Borrowers

These rate reductions and the launch of the new 3-Year Fixed Rate Mortgage at 4.99% will undoubtedly be a massive help to borrowers. They will enjoy more affordable financing options, whether they are looking to purchase a new home, transfer an existing product, or access additional borrowing. With a 3-Year Fixed Rate Mortgage, borrowers can secure their financial future with a competitive interest rate for an extended period (i.e. Longer than a 2-year fixed) and still have the flexibility to switch products sooner (as opposed to taking a 5-year+ fixed mortgage), shielding them from potential fluctuations in the market. The introduction of cashback for borrowers with smaller deposits further demonstrates TSB’s commitment to supporting homeownership for a wide range of customers. This cashback can help ease the financial burden of moving into a new property, especially first-time buyers who may not have access to as much cash as a seasoned buyer.

Speak To A Mortgage Broker

With TSB’s latest mortgage rate reductions and the introduction of a competitive 3-Year Fixed Rate Mortgage at 4.99%, the bank is poised to provide borrowers with attractive options that offer financial stability and predictability. Homebuyers and existing TSB customers are encouraged to take advantage of these new offerings and explore the benefits they bring in terms of financial security and affordability. However, they should always exercise caution when looking for any mortgage deal, and should always discuss things with a mortgage advisor before making any firm decisions. If you are looking at securing a new loan, give our team of advisors at Oportfolio Mortgages a call today to see how we can help.

We're Here to Help

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.

As featured in

Understanding a Volatile Mortgage Market eBook

Download Our eBook

Join our mailing list and receive a link to our latest ebook, Understanding a Volatile Mortgage Market. 23 pages of practical insights to navigate the unpredictable mortgage landscape.

You Will Receive A Link To Your eBook Shortly!