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Borrowers told "if you see a good deal then snap it up as quickly" as TSB announces mixed bag of rate changes

ended 08. January 2025

TSB has this morning announced that, from Thursday 9 January, it is increasing selected mortgage rates by up to 0.2% and reducing other rates by 0.15% (rate changes below). Newspage asked brokers for their views, bottom.

Residential

We’re increasing rates on:

  • 2 Year Fixed First Time Buyer and Home Mover 75-85% LTV, by 0.10%
  • 5 Year Fixed Remortgage 0-75% LTV, by 0.20%

We’re reducing rates on: 

  • 2 Year Fixed First Time Buyer and Home Mover 85-90% LTV, by 0.15%

Product Transfer

We’re increasing rates on:

  • Residential 5 Year Fixed 0-75% LTV, by 0.15%

Additional Borrowing

We’re increasing rates on:

  • Residential 5 Year Fixed 0-75% LTV, by 0.15%

5 responses from the Newspage community

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Editor
Ken James
Director at Contractor Mortgage Services
Buying a home was never going to be easy and, with the mixed messages being sent by TSB today, it looks like that is not set to change. Whilst we all want to see rate cuts across the board with lots of competition from lenders, the reality is that not all lenders can afford this within their business models. The clear message being sent to the market is that if you see a good deal then snap it up as quickly as it's possible many rates will be here today and gone tomorrow.
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Justin Moy
Managing Director at EHF Mortgages
The changes from TSB show a shift among lenders towards supporting those moving home with a smaller deposit. I think that we will see other lenders follow with purchase-only deals becoming a little cheaper than remortgage rates, as banks will want to support the property market with Stamp Duty changes looming on the horizon.
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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
With these changes, TSB are keeping new potential borrowers within sight and existing borrowers in sight by way of the James Webb Space Telescope.
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Editor
Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
TSB's changes show how topsy-turvy the mortgage market is at present. Some rates are going up, others coming down. Let's see what the next Bank of England rate decision brings.
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Denni Tyson
Financial Planner at Pia Financial Solutions
I don't think anyone was anticipating a rate war but certainly some fluctuations. Increasing rates for product transfers seems an odd decision with not many other movers on this front.