The bank also launched a rate switch fee for buy-to-let products earlier this month.
Procuration fees for rate switch are 0.3 per cent for networks and 0.27 per cent for directly authorised advisers.
The bank confirmed the move in a broker memo sent to brokers last night. TSB begins rolling out fees today on five-year products, with two-year products to follow in December, after the move was delayed when the bank was beset by IT failures.
Roland McCormack, TSB’s mortgage distribution director, said: “We’ve strengthened our commitment to brokers with the launch of our product transfer capability service, Rate Switch. Our new service not only allows brokers to offer their clients more availability and choice in the buy-to-let market and residential (5yr) markets but also gives some customers the option to easily transfer from one TSB product to another, giving them competitive rates with no legal or valuation fees. We would like to thank our brokers for their continued support in helping us launch Rate Switch.”
Rate switch was piloted with a number of brokers including London and Country.
Yesterday, the bank confirmed the appointment of its new CEO Debbie Crosbie, after previous boss Paul Pester handed in his resignation in September over the critical IT issues the bank struggled with this year, as it moved customers to a new banking platform.
Crosbie joins from CYBG – the parent company of Clydesdale Bank, Yorkshire Bank and Virgin Money – where she is currently group chief operating officer and executive director.