TSB 

TSB cuts shared ownership and shared equity rates

TSB cuts shared ownership and shared equity rates

TSB has cut its two-year fixed rates for shared ownership and shared equity borrowers and launched new buy-to-let products.

Reductions of up to 0.25 percentage points mean the two-year rates for shared ownership and shared equity borrowers looking to move house start at 1.54 per cent up to 75 per cent loan-to-value (LTV) with a £995 product fee.

The lender has also added fee-free options for this group of borrowers, with rates starting from 1.99 per cent up to 75 per cent LTV.

Shared ownership and shared equity borrowers looking to remortgage can opt for two-year fixes at 1.84 per cent with a £995 fee or 2.29 per cent without a fee, both up to 60 per cent LTV.

Meanwhile, two-year fixes with a £995 fee have been launched for buy-to-let borrowers looking to purchase or remortgage, with rates starting from 1.79 per cent for house purchasers with a 40 per cent deposit.

TSB has cut selected rates on residential products for home movers and remortgagers, although increases of up to 0.15 percentage points have been made to some loans.

Adrian Kidd, IFA at London-based Radcliffe and Newlands, said: “That is a good move from TSB - they are just trying to help with the affordability, which is going to be stretched based on the inflation data. Anything these lenders can do to help affordability for niche areas of the market can only help.

“There is a lot of building work going on where I live, and they are all shared ownership sales. I would not be surprised if that was the easiest way to get on the ladder. It is not necessarily the best way, but some people are happy to pay the mortgage service charge and the rent.”

simon.allin@ft.com 

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