TSB will lift the price of its two- and three-year fixed-rate loans for purchase and remortgage, at up to 75% loan to value, by 20 basis points tomorrow (26 October).
The move by the high street lender follows its “urgent withdrawal” of a broad range of two-year residential products yesterday.
The business says that the offers pulled on Tuesday will be reintroduced at the new rates on Thursday.
The bank tells brokers to submit existing applications for the affected products by midnight on 25 October, “as they won’t be available after this time”.
John Charcol mortgage technical manager Nicholas Mendes says: “TSB by all accounts has been a market leading two-year fix by some mile.
“When we consider Nationwide and Barclays’ two-year fixes on remortgages, and Virgin and Leeds Building Society on purchases, there is a significant margin between competitor’s pricing and TSB.
“TSB will have bitten more than they can chew, and the latest rate increase, to be more in line with competitors, was always on the cards. No doubt, it will also reduce the impact on the firm’s service levels.”
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