The decision by TSB to allow certain customers to switch their mortgages away from the bank without facing the usual repayment charges has been welcomed by mortgage brokers.
The bank said customers will not face the usual early repayment charges when switching away due to the its much publicised technology problems.
The waiver will affect customers who were at the point of remortgaging but have been unable to transfer to another TSB product, as well as certain customers who want to switch to other providers.
The problems arose during TSB’s recent technology outage, when the usual system for transferring stopped working.
The bank said it understands that certain customers may not wish to wait until the delays are rectified and pledged to assist customers in a small number of cases who wish to switch provider.
A representative of TSB said: "We would like to apologise for the delay in turning our mortgage product transfer capability back on.
"We know how frustrating this must be but we would like to reassure our customers we are working as hard as we can to reinstate this, and no customer will be left out of pocket as a result.
"We would encourage any customers who are looking to complete a product transfer with TSB to contact us to discuss their circumstances as soon as possible."
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “My view is TSB is trying to do the right thing. The IT challenges they are having are well known, and they are making sure customers are not penalised.
"As a firm TSB has always communicated honestly with brokers and this in the spirit of that.”
Martin Stewart, a director at London Money, said a client of his had a £7,000 early repayment fee waived by TSB because they were unable to provide a service.
He said TSB's actions were "honourable" but warned many people might not be able to switch to another provider and could be stuck with TSB on a higher rate.
TSB was previously part of Lloyds Banking Group, and when it was floated on the stock exchange it was permitted to use the existing Lloyds IT system for two years as part of the separation.
The recent problems began when TSB had to move away from the Lloyds system.
david.thorpe@ft.com
