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TSB adjusts raft of resi and BTL mortgage rates

  • 23/08/2019
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TSB adjusts raft of resi and BTL mortgage rates
TSB has amended the rates on its residential and buy-to-let remortgages with increases of up to 0.2 per cent on its two- and five-year fixed 90-95 per cent loan to value (LTV) house purchase products.


Effective 23 August, the bank made reductions to other mortgages including reductions of up to 0.05 per cent on selected five-year fixed house purchase at 75-85 per cent LTV rates and five-year fixed remortgages at 60-80 per cent LTV. 

It also made reductions of up to 0.25 per cent on rates on selected buy-to-let fixed and tracker remortgages of up to 75 per cent LTV. 

Nick Smith, TSB’s head of mortgages, said: “We’ve made a number of changes to our mortgage range with the sole purpose of helping more people borrow well, our changes are aimed at helping landlords as well as homeowners with both small and large deposits.” 

Recovering margins 

Since the beginning of this year, Moneyfacts analysis has shown that the strongest rate competition appeared to take place at the maximum 95 per cent LTV market. As a result, the two-year average fixed rate at this tier was driven down from 3.46 per cent on 1 January to 3.24 per cent by 16 May, where it has remained relatively unchanged since. 

Darren Cook, financial expert at Moneyfacts, said: “I can confirm that there has been little activity at high LTVs. 

“What may be happening in this instance is that competition at high LTVs was strong, lenders were clearly cutting risk margins to compete, the PRA showed some concern in May, now lenders may be looking at recovering these risk margins that they previously sacrificed.”

In May, the PRA said it had a “a very sceptical eye” on mortgage lenders and their strategies for managing lending risk exposure. The price wars in the market had resulted in lenders “risking up”, evident in the increase in higher loan-to-value and loan-to-income lending.

Sam Woods, Bank of England deputy governor for prudential regulation and chief executive of the PRA, said at the time that although the shifts may be “well within firms’ management capabilities”, the regulatory body would be watching the sector “like a hawk”.

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