TSB has launched a new range of remortgage products available to homeowners with small deposits, while cutting rates across homemover mortgages.
From 24 March, remortgagers with a loan-to-value (LTV) of 85 to 90 per cent will get new two, three, five and 10-year fixed-rate mortgages, with rates starting from 2.59 per cent.
In addition to the new products, homemovers looking for a two-year fixed rate mortgage with a LTV of 85 to 90 per cent will benefit from a 0.1 per cent reduction from 3.29 to 3.19 per cent, with a product fee of £995, or a 0.2 per cent reduction from 3.79 to 3.59 per cent, with no product fee.
Two-year fixed-rate mortgages for homemovers with a slightly higher LTV of 90 to 95 per cent will see a 0.1 per cent reduction, either with or without a product fee.
Homemovers looking for either a three-year or five-year fixed-rate mortgage will have a 0.1 per cent rate cut.
Roland McCormack, TSB’s mortgage distribution director, said by cutting rates, the bank was providing more options to more homeowners across Britain, “helping them take their next steps on the property ladder”.
Daniel Bailey, mortgage adviser at Derbyshire-based Middleton Finance, said it was welcome news that TSB was cutting rates for higher LTV mortgages.
Mr Bailey said: “There are still many home owners with not much equity in their property and paying high interest rates. Deposits are still the main issue for first-time buyers or homemovers, so any reduction in rates will only be of benefit to the borrower.
“It is refreshing to see a lender offering a borrower with smaller deposits more options at competitive rates. The 10-year fixed deal may be of interest as the borrower would only be tied in for five years,” he added.