TSB shared ownership/equity rates fall

TSB has made cuts of up to 0.65 percentage points on its range of two-year fixed-rate shared ownership and shared equity mortgages.

At up to 75 per cent loan-to-value, the rate on the fee-free loan has been discounted from 3.54 per cent to 2.89 per cent.

The lender has also lowered the rate for loans between 80 per cent and 90 per cent LTV by 0.55 percentage points to 4.54 per cent, with a £995 product fee.

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For homebuyers taking out a loan between 75 per cent and 80 per cent of the value of their property, the rate of interest has been cut from 3.89 per cent to 3.34 per cent, with a £995 product fee.

For loans up to 60 per cent and between 60 to 75 per cent, the rate of interest has been reduced by 0.35 and 0.65 percentage points to 2.24 per cent and 2.49 per cent respectively.

Homebuyers taking out a loan with an LTV of up to 75 per cent will receive £250 towards the cost of a solicitor carrying out a conveyance on their new home.

In May, the lender lowered its rates across its range of three, five and 10-year residential mortgages.

This included a five-year fix which was discounted to 2.89 per cent between 75 and 80 per cent LTV with a £995 product fee. The rate for the fee-free option is 3.04 per cent.

In addition, a higher LTV range of 85 to 90 per cent was introduced for three-year fixes with a rate of 4.14 per cent, and £995 product fee.

Provider view

Ian Ramsden, mortgage director at TSB said: “TSB is reducing rates across its shared equity and shared ownership mortgage deals, making them more competitive for homebuyers across a wide range of loan-to-value ratios. In doing so, the bank is helping provide aspiring British homeowners an affordable option to get on the property ladder.”

Adviser view

Mike Pendergast, IFA at Zen Financial Services, based in Cheshire, said: “It is of course better if the borrower could save enough money to get a traditional residential mortgage outright, but shared equity mortgage is a good middle ground. The monthly repayments are more or less the same as what you would be paying if you were to rent the property. This way, you are building up equity as opposed to just handing money to the landlord.”

“We have not had many shared equity enquiries recently but generally it seems that more people are looking to borrow and move homes. It seems lenders have relaxed their criteria in the past 12 months, although it has not eased to where it was pre-2007/08.”


Ranges from £0 to £995.


It would appear that the ‘rate war’ has found its way into the market for shared ownership and shared equity. Greater competition is of course good news for borrowers – especially first-time buyers struggling to get onto the property ladder.

Here, the offerings are a clear reflection of the lender’s statement of intent to win the lion’s share of the market. Notably, the fee-free product up to 75 per cent LTV, which comes with £250 cashback towards the cost of a solicitor carrying out a conveyance on the property, could prove popular with borrowers.