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"It's starting to feel like the walls are closing in" as TSB increases fixed rates by up to 0.25%

ended 19. March 2024

Ahead of tomorrow's inflation data, TSB has just announced that, from Wednesday 20 March, it is increasing fixed rates by up to 0.25% across its residential, product transfer and additional borrowing ranges. Newspage asked brokers for their views, below.

8 responses from the Newspage community

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Ken James
Director at Contractor Mortgage Services
TSB used to use the slogan, "The bank that likes to say yes", but this is a clear nod that they are currently more interested in saying no. It's hard to know if this this increase reflects their thoughts on the inflation data that will be published tommorow. The increases are significant and make the Coventry decision last week to reduce rates stand out even more against this backdrop of rate rises. Let's hope the inflation data tomorrow swings the pendulum back in favour of cuts rather than more increases as it's starting to feel like the walls are closing in.
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Steven Neale
Director and Owner at SN Mortgages
Some lenders are raising rates while others are lowering them. Is it any surprise borrowers are confused about which way interest rates are going? A 0.25% rise may not seem much on the cost of a mortgage but add that to the already high costs of heating bills, food prices, Council Tax, insurance premiums and you can understand why mortgage arrears are up, credit card balances are increasing and people are struggling to keep a roof over their heads. Rates need to come down now before more homes are repossessed, putting further strain on the Government to house these people.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Further rate increases from the TSB today on the back of Nationwide increasing yesterday shows lenders are not exactly brimming with confidence. The direction of travel was so positive at the start of the year but all that good work has now been undone. We await the inevitable hold decision from the Bank of England later this week, which will do nothing to stimulate the economy or property market.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
More mortgage misery for borrowers as TSB ratchets up rates across the board. This does nothing to install any confience among prospective buyers, with all eyes now on how the Bank of England will respond to Wednesday's inflation data. The property and mortgage market need a serious pick-me-up after the zero impact Budget.
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Justin Moy
Managing Director at EHF Mortgages
It's disappointing to see yet more fixed rate increases. There is currently a domino effect with other lenders increasing rates over the past few days. Lenders are complaining about significant reductions in application numbers in recent weeks, and it is no suprise. Prospective buyers are nervously waiting for better deals before they commit, whilst existing borrowers will be resigned to paying more for longer.
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Aaron Strutt
Product and Communications Director at Trinity Financial
Given the number of lenders that have hiked their rates recently, it is surprising mortgages are not more expensive. MPowered, Barclays and Natwest have two-year fixes priced just over 4.5%, and HSBC, Nationwide, and RBS have some of the most competitively priced five-year fixes starting from 4.2%. If you are on the hunt for a mortgage it still makes sense to secure a deal and then swap to a cheaper one if rates come down again.
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Michelle Lawson
Director at Lawson Financial
These rate increases are interesting given that swap rates are largely stable. Let's see what the CPI information shows tomorrow and we should be able to determine whether this is all precautionary. The mixed messages in the mortgage market are becoming deafening.
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Elliott Culley
Director at Switch Mortgage Finance
This is a disappointing decision by TSB and it follows other lenders' decision to raise rates over the past week or two. The positivity is getting sucked out of the market and it's amazing that we find ourselves in this situation once again. This is a stark reminder to all mortgage borrowers to be proactive to make sure they get the best deal possible.