Rates for its two-year fixed deals at up to 85% loan to value (LTV) with a £995 fee has gone up by 0.15% or 0.20%, while rates for its five-year fixed-rate products up to 75% LTV have increased by 0.10% or 0.15%.
On Monday, TSB published a warning to consumers entitled Getting Britain ready for rate rise, in which it examined how much typical mortgage payments could rise by if interest rates increased. It also showed where people were likely to cut back most if they needed to find more money to pay for their mortgage.
The latest increases come after a raft of recent rate changes. In August, TSB announced that it was raising rates on all its remortgage products by either 0.05 or 0.10%. And in September, TSB announced cuts which saw buy-to-let and remortgage product rates (at all LTV levels) reduced by up to 0.25%.
TSB’s announcement also comes as the bank is preparing its borrowers for a rise in base lending rates in the November 2nd Bank of England meeting, which might see the base rate change from the current record low of 0.25%.
To get Britain ready for a rate rise, TSB suggested that borrowers switch to fixed rate loans so to avoid any potential extra costs that could be created by a tracker or variable rate mortgage.