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TSB increases fixed rates by up to 0.2% as market pricing bounces

Journalist: Justin Moy, Contributing Editor

ended 15. May 2025

TSB has this morning announced small increases of up to 0.2% on a few of its residential and BTL products. The increases may well reflect rises in Swap rates over the past few days. Free news agency, Newspage, asked brokers if the rate cuts of recent weeks have come to an end and whether they will plateau or potentially edge up. With the UK economy delivering stronger than expected growth this morning, and the trade war calming down, the flurry of base rate cuts expected in 2025 and 2026 may not materialise. Views below.

7 responses from the Newspage community

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Ken James
Director at Contractor Mortgage Services
Cracks are starting to appear in the dam walls, but will they burst open? TSB may be the first to make some small increases in rates, but I suspect they will not be the last as lenders begin to price in increased swap rates. The topsy turvy movement of the market may not surprise brokers but borrowers have been feeling more positive of late. This may just be the nudge they need to remember that rates can rise as quickly as they fall.
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Andrew Montlake
CEO at Coreco
Anyone who closely monitors the swap markets will have been expecting rate increases from lenders at some point this week. Wholesale funding costs have been edging up and, as a result, the costs to borrowers will also rise.If you're looking to secure a mortgage, be quick as the best rates currently available could be pulled at any time.
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Justin Moy
Managing Director at EHF Mortgages
Fixed-rate increases have looked increasingly likely throughout this week, with increasing Swap rates reflecting improved global trade and a calm-down in tariffs. For mortgage borrowers, sadly, this isn't the news they want to hear, with base rate cuts less likely soon, which has pushed Swap rates a little higher. Now's definitely the time to move quickly to secure the best rates we have seen for a long time, so be document-ready and able to move fast.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
We've likely hit the bottom with the recent rate cuts amid a calmer period for the global economy. With the news that the economy grew by 0.7% in Q1, it's also less likely we'll see more cuts to the base rate soon. All this means lenders are unlikely to make any headline-grabbing cuts anytime soon. Borrowers should take note of this and act accordingly, as it could be a long wait to see rates go down much further than they already have.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Given the trajectory of swap rates in recent days, mortgage pricing may well have bottomed out for the time being, and other lenders could follow TSB's lead in the days and weeks ahead. Once again this shows how quickly things can turn for borrowers.
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Dariusz Karpowicz
Director at Albion Financial Advice
These rate increases from TSB signal a potential shift in the mortgage market outlook. This upward adjustment of TSB's fixed rates by up to 0.2% potentially marks a turning point in the mortgage market's downward trajectory. With UK economic growth exceeding expectations at 0.7% in Q1 and global trade tensions subsiding, the anticipated sequence of base rate reductions may not materialise as forecast. Borrowers currently considering their options would be prudent to act quickly, as current rates may represent the most favourable position we'll see for some time.
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Sean Horton
Managing Director at Respect Mortgages
TSB's modest rate increases come as no surprise to those watching swap rates climb in recent days. This marks what's likely the end of the recent rate cutting cycle we've enjoyed in the mortgage market.

With the economy performing better than expected, lenders are adjusting their pricing accordingly. Anyone still shopping for a mortgage would be wise to move quickly, as the best deals we've seen recently won't stick around for long.