On Friday, TSB drastically cut interest rates on some of its fixed-term, higher loan to value mortgages by up to 1.30%. Mortgages for Business residential consultant, Ashley Jones, explains…
Effective of Friday 18th October 2019, TSB has made several product changes to both residential purchase and remortgage rates, including in its shared ownership line.
The largest changes are to the 10 year fixed remortgage range, with 80-85% Loan to Value (LTV) dropping to start from 2.99%, with an enticing offer of free legal fees or £300 cashback.
For purchases in the 10 year fixed rate mortgage range, 85-90% LTV have dropped by up to 1.05%, now starting at 2.99%, while the 90-95% LTV range dropped 1.0%, with rates now starting at 4.09%. Neither of these mortgages incurs a product fee.
As first-time buyers continue to struggle to get on the property ladder, shared ownership offers an attractive way in, as less deposit is required. TSB has also overhauled their range in this area, by reducing some of its shared ownership mortgage rates by up to 0.25%.
2 and 5-year fixed rates are available from 2.14% up to 60% LTV, from 2.19% up to 75% LTV and from 2.44% up to 85% LTV. They have also included a 2-year 85-90% LTV rate from 2.69%, and a 5-year from 2.84%. All of these shared ownership products have no fee and also feature £500 cashback!
Nick Smith, TSB’s Head of Mortgages, said: “With the continuing economic and political uncertainty, these changes will be welcomed by many borrowers, particularly those with smaller deposits who are looking to remortgage onto longer-term fixed-rate products.”
These products are currently available until the end of February 2020.
This comes as many consumers continue to favour longer-term fixes amidst the ongoing economic uncertainty. In July, we saw Virgin Money release a 15-year fixed rate, available up to 95% LTV and in August we reported on 5-year fixes reaching their lowest average level of 2019. We’ve been seeing lenders launching more 10-year fixed rate products as the market appetite continues to favour the certainty and stability they bring, while interest rates are low.
If you have any questions about these rates or others that might be available to you, whether you’re purchasing or remortgaging your residential property, do not hesitate to get in contact with me, Ashley Jones, on 01732 471694 or AshleyJ@mortgagesforbusiness.co.uk.
Rates correct as at 22/10/2019.
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