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TSB overhauls affordability including stress rate and mortgage holidays

  • 19/06/2020
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TSB overhauls affordability including stress rate and mortgage holidays
TSB is making a host of changes to its affordability calculations for residential mortgage applications.


From today, the lender has reduced its stress interest rate from 7.25 per cent down to 6.6 per cent.

It is also requesting details of mortgage payment holidays on its coronavirus income impact form, with all cases where applicants are currently taking a break being referred to a underwriter for review.

TSB has also stopped accepting additional income through bonus, overtime or commission towards affordability assessment.

And it has limited the amount of unsecured debt consolidation it will accept to 20 per cent of the property’s value.

In a communication sent to brokers the lender said: “We’re making some changes to our lending criteria on residential mortgages to make sure we’re taking a responsible approach to helping our customers borrow well.”

It added that decisions in principle for pipeline applications started before today will not be affected by the changes.

A TSB spokesperson told Mortgage Solutions: “These are temporary measures to support our customers during these unprecedented times.

“They help our customers to borrow well and ensure the mortgages we provide are affordable to our customers.”


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