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TSB raises fixed rates again

TSB has again increased rates on many of its two- and five-year fixes.

This is the fourth time since the end of August that the bank has raised prices on its fixed-rate mortgage range.

These latest changes will see a 0.2 per cent increase to its five-year fixed-rate loans at 60 to 75 per cent LTV, with a £995 fee. The equivalent five-year fix with no fee will be increased by 0.1 per cent.

Similarly, rates on all five-year fixes up to 60 per cent LTV will increase by 0.1 per cent.

There will be a 0.2 per cent increase to its two-year fixes, up to 75 per cent LTV (with no fee).

However, TSB has reduced the cost of its two-year fixes at 90 to 95 per cent LTV by 0.2 per cent.

In the past three months TSB has raised rates on its fixed-rate mortgage range four times.

Its fee-free fixed rate deals were increased by up to 0.2 per cent at the end of October.

At the same time the bank  withdrew its three-year fixed rates deals (from 0 to 90 per cent LTV).

Earlier in October it raised its fee-charging fixed rate deals, again by up to 0.2 per cent.

At the end of August TSB raised rates on all its remortgage products by either 0.05 or 0.10 per cent.

In May the lender took similar action, upping rates by up to 0.10 per cent on selected mortgages for remortgage and home-mover borrowers.

The bank says it offers a “simple straightforward and transparent banking model”. It was launched to introduce more competition into the UK banking market and currently has around five million customers.

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