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TSB widens distribution in second phase of broker launch

TSB Intermediary has opened up its distribution to nine major distributors and 73 directly authorised firms.

The new intermediary arm of TSB Bank has finished piloting its intermediary offering with London & Country and now offers its products through Sesame, Intrinsic, LSL, Legal & General, Connells, PTFS, Mortgage Advice Bureau, Mortgage Intelligence and Tenet.

TSB plans to be whole-of-market later this year, once it has established its service proposition.

It is paying 0.4 per cent to appointed representatives and 0.33 per cent to DA firms for completed residential applications. It also plans to enter the buy-to-let market later in the year. The lender adds it will not dual price.

Products in the TSB range include a fee-free10-year fix up to 85 per cent LTV at 4.29 per cent, with early repayment charges applied only for the first five years. A 60 per cent LTV version is offered at 3.44 per cent.

A 60 per cent LTV two-year fixed rate is offered at 1.49 per cent with £1,995 fee. A 90 per cent LTV version is priced at 3.39 per cent, with a reduced £995 fee.

TSB intermediary director Roland McCormack says: “TSB was born to bring competition to the market and we will be a substantial intermediary player. We’re dedicated to providing a great service to brokers and competitive mortgages for their customers.

“Service is our number one priority and we aren’t prepared to sacrifice for volume, which is why we’re looking to grow organically.”

The TSB brand was created in September 2013 when Lloyds Banking Group sold off 631 branches to comply with European Commission requirements as part of receiving state aid in 2008.

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  • JR Hartley 19th January 2015 at 5:14 pm

    Virgins rates are not as good as the ones TSB have entered the fray with…. I for one will happily receive 0.33% to ensure I secure my clients business Graham. What you have to appreciate also is that they may pay 0.4% to a network but that network will retain an element of that fee before they pass it on to the AR…It probably works out the same….

  • Graham Kennedy 19th January 2015 at 1:44 pm

    It’s not all about the proc fee for me Barry and never has been in 19 years in business especially as a broker can’t survive on that alone. That’s why I was “wondering” if they are cleaning up with their level of proc fee AND competitive rates. Although not a lender I have used regularly partly due to the overly onerous online affordability calculator, on the occasions that I have used them their service, criteria and support from my BDM have all usually been pretty good. While I agree that affordability needs to be carefully considered for a good customer outcome some calculators in the market are, in my opinion, over the top.

  • Barry Bolter 19th January 2015 at 10:57 am

    I’m sure Virgin Money are Graham, after all its all about the procuraton fee isn’t it?.

    Assume service, criteria, support and products/pricing are no longer relevant in achieving a good customer outcome?

  • Graham Kennedy 19th January 2015 at 10:19 am

    0.4% to Appointed Representatives and 0.33% to Directly Authorised Brokers!! Why such a differential? Surprised L&G Mortgage Club agreeing to this. Having been a long time supporter and well disadvantaged by the closure of Lloyds TSB Spearhead Mortgages where the introducer fee was 0.4% as a DA this will only serve to make me think twice about supporting TSB again. Still at least it’s higher than former sister company Halifax at 0.3% but I wonder why? I also wonder if Virgin Money is cleaning up with their introducer fee of 0.45% given their competitive interest rates???