TSB Mortgages Reviews

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TSB – which stands for Trustee Savings Bank – is a UK bank that has been operating for over 200 years.

Originally set up to help Britain’s growing middle class save for their future through interest-paying savings accounts, TSB now has 5 million customers and is one of the UK’s largest lenders.

In 2021 alone, it has issued £9.2bn in mortgages.

What mortgage options does TSB offer?

TSB offers mortgages for first-time buyers, movers, and those remortgaging existing homes, up to 95% of the home’s value.

TSB also offers buy-to-let mortgages of up to 80% of the property’s value when circumstances allow.

The bank offers a range of mortgage types in these categories, including fixed-rate, tracker and proprietary variable-rate products.

What mortgage rates does TSB offer?

As of July 2022, TSB offers the following rates for its mortgages. Note that while prices are correct at the time of publication, they may change frequently.

Fixed Rate Mortgage

Flat-fee and no-fee options are available, while all transactions incur an Early Redemption Fee (ERC) during the term.

Two-year fixed rate

These mortgages guarantee a fixed interest rate for two years.

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Interest rates range from 3.44% to 3.74%, depending on whether you’re a first-time home buyer, mover or debtor – and what percentage of the property’s value you’re willing to borrow.

After a two-year fixed-rate period, homeowners and debtors will transition to TSB’s homeowner variable rate, currently 4.74%.

First-time buyers use the bank’s cheaper follow-up rate, currently at 3.74%.

Five-year fixed rate

These mortgages guarantee a fixed interest rate for five years.

Interest rates range from 3.24% to 4.14%, depending on whether you’re a first-time home buyer, mover or debtor – and what percentage of the property’s value you’re willing to borrow.

When the five-year fixed term ends, movers and debtors will transition to TSB’s variable homeowner rate, currently 4.74%.

First-time buyers use the bank’s cheaper follow-up rate, currently at 3.74%.

10 Year Fixed Rate

These mortgages guarantee your interest rate for 10 years.

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Rates range from 3.44% to 4.74%, depending on whether you’re a first-time home buyer, mover or debtor – and the percentage of the property’s value you want to borrow.

At the end of the 10-year fixed rate period, homeowners and homeowners will transition to TSB’s homeowner variable rate, currently 4.74%.

First-time buyers will upgrade to a cheaper follow-up tracker rate, currently 3.49%.

Keep in mind that any follow-on interest rates may be different at the end of your mortgage transaction.

Track mortgage

TSB offers two-year tracker mortgages with interest rates that fluctuate directly from the Bank of England rates.

All these offers are subject to an admin fee of £995. However, there is no prepayment penalty.

TSB trackers charge 1.59% to 3.54% more than bank rates, depending on whether you’re a first-time buyer, mover or debtor – and the percentage of the property’s value you want to borrow.

After two years, movers and refinancers returned to TSB’s homeowner variable rate, currently at 4.74%.

First-time buyers switch to a cheaper follow-up tracker rate, currently at 2.49%.

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Hire purchase

TSB also offers fixed-rate and tracking mortgages for the purchase of rental properties. Remember, if you rent out with a mortgage, you can only borrow up to 80% of the property’s value.

How long does a TSB mortgage application take?

According to research by our online brokerage partner Trussle, it takes an average of 11 days for a mortgage loan to be approved by the TSB. That’s five days faster than the average approval time for all lenders.

However, the time it takes to process your application will depend on factors such as the lender’s workload at the time you submit your application and your personal circumstances.

How much can I borrow from TSB?

You can typically borrow up to 4.75 times your income from TSB, but the exact value you get depends on your salary and the loan-to-value ratio (LTV) you want to borrow.

Lenders also take into account factors such as your credit history, daily expenses, and age.

How do I get a mortgage from TSB?

To apply for a mortgage loan with TSB, you can go directly to the lender or use a mortgage broker.

Brokers (some of which do not charge clients fees) will benchmark TSB mortgages against the wider market to ensure you get the best deal.

Your application can also be processed faster because the broker is familiar with the process and can help you gather all the necessary documents.

If you go directly to TSB, you can apply online, by phone or in person at a branch.

When you first apply, you will receive a ‘Notice of Principles’ showing how much you can borrow.

The next step is to fill out the completed application form. If successful, you will receive a mortgage quote from TSB.

To complete your application, you must provide personal information, including address history, proof of address and proof of income. Lenders will also ask about your financial obligations, such as credit cards and loans.

Do I need good credit to get a TSB mortgage?

To get a TSB mortgage, you must have a very good credit history. If you have a bad credit history, you are less likely to get a TSB mortgage.

How is TSB’s customer service?

In the latest ratings from data provider Fairer Finance, TSB Mortgage’s overall customer experience score was 63%.

The lender performed particularly well in “Complaint Conduct” (78.69%), also scoring in the “Customer Trust” (64.23%) and “Transparency” (65.72%) categories.

Do I need to establish insurance with a TSB mortgage?

If you take out a mortgage through TSB, you must have proper home insurance for the life of the mortgage.

Although TSB offers construction insurance, lenders are not obligated to purchase it. Shopping around can help you find the provider that offers the coverage you need at the best price.

Should I get a mortgage from TSB?

TSB is an established mortgage provider with strong customer service and competitive mortgage rates.

However, TSB may or may not be the best lender for you, depending on your situation and the deals and rates they offer when you’re ready to apply for a mortgage. Contact a free mortgage broker to make sure you make the right choice.

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