TSB scraps long-term fixes, Aldermore cuts floating charge and Foundation introduces new BTL loans

TSB has axed a number of competitively priced products from its mortgage range. These include its decade-long fixes for homebuyers, which started at rates of just 2.34%, and all of its three-year fixes for homebuyers. These had rates starting at below 2%, among the lowest on the market.

Remortgagers are also affected. A two-year fix to 80% LTV with no product fee and a 10-year fixed rate with 10-year ERC are no longer available.

In addition, fee-free two- and five-year fixes for homebuyers up to 80% loan to value (LTV) have been dropped in the shake-up.

Halifax, Santander, Nationwide and Tesco are among several lenders to have raised rates or dropped deals in recent weeks, in expectation of a hike in the Bank of England interest rate this coming May.

Elsewhere, the specialist bank Aldermore has announced that it will no longer require a floating charge for most buy to let applications from limited companies.

To qualify, the loan applied for must be no greater than £1m, with an LTV of 75% or less. Plus, the applicant must be an SPV or trading limited company set up exclusively for the purposes of property investment. Aldermore reserves the right to request a floating charge in more complex applications

Another buy to let lender, Foundation Home Loans, has introduced two new three-year HMO products to its BTL range.

It is now offering a rate of 3.29% to 65% LTV, and a rate of 3.74% to 75% LTV. Both new products carry an arrangement fee of 1.5%.

Exclusively for portfolio landlords, Foundation continues to offer a range of five-year fixed rates which have not increased.

 

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