TSB has reduced residential rates on a range of its mortgages for people with larger deposits.
For homemovers, first-time buyers and people remortgaging, TSB is reducing the rate by as much as 0.2 per cent over two-year, five-year and 10-year terms on mortgages at up to 85 per cent loan-to-value (LTV).
Mortgage account fees are also being waived on the bank’s fee-free 10-year remortgage product.
But mortgage account fees will now apply to the Fix & Flex Homemover and first-time buyer range.
Meanwhile TSB’s two-year fixed rate mortgage will increase by 0.25 per cent with an LTV of 85 to 90 per cent and 0.10 percent for homebuyers with an LTV of 90 to 95 per cent.
David Wilson, managing director of Newcastle-based NE Money, said: “I use TSB a reasonable amount and they are a good lender.
“The big thing for me at the moment is the fees associated with mortgages because most lenders sit between 1.8 per cent and the low 2 per cents for fixed rates over two years but the majority of them come with an arrangement fee of around £1,000.
“In those cases it makes sense to get rid of the fee and take a slightly higher rate so I think lenders need to be more competitive on fees.”
