The incentive coincides with the change to its rental cover calculation which increases today from 125% to 145%.
For loan-to-values (LTV) up to 65% the rental cover calculation will be 145% of 5% of the pay rate, whichever is higher. Applications from 65.01% to 75% LTV will be assessed on a calculation of 145% of 5.5% or pay rate, whichever is higher.
The cashback will be paid to all landlords on completion of the mortgage and is available on two, three and five-year fixed terms as well as a two-year tracker.
Landlords looking for a two-year fixed-rate mortgage could benefit from a 0.25% with rates starting from 2.34% with a £1,995 product fee. Those looking for a five-year fixed-rate mortgage could gain from a 0.25% rate cut to 3.14% with a £1,995 product fee.
Roland McCormack (pictured), mortgage distribution director at TSB, said: “We have been thinking for some time how we can further help landlords borrow well, and today’s announcement does exactly that.”
