TSB has announced that from today, the 20th of March, they’re dialing up the heat on their mortgage rates. This change isn’t just a minor tweak; it’s a significant hike of up to 0.25 percentage points affecting both new and existing customers eyeing fixed-rate deals. If you’re in the market for a new home, looking to remortgage, or nearing the end of your current mortgage deal, this news is especially pertinent to you.

What’s Changing?

TSB’s decision impacts a broad range of mortgage products. Here’s what’s going up:

Remortgage Rates on the Rise

For those looking to remortgage, specifically the deals locking in rates for two and five years, there’s a notable increase. If your loan to value (LTV) ratio falls between 75% and 95%, brace yourself for higher costs. The new rates are set at 5.44% for two-year fixed rates and 4.99% for five-year fixed rates, assuming you’re at 75% LTV. Both options come with a £995 fee tacked on.

First-Time Buyers, Take Note

First-time homebuyers aren’t spared in this rate revision. For those aiming to secure a two-year fixed rate on a home purchase, the starting rate has jumped to 5.09% for an 80% LTV mortgage, accompanied by a £995 fee. And if you’re leaning towards a longer-term commitment with a five-year fixed rate at 90% LTV, expect rates to start from 5.34%—though, silver lining, there’s no fee for this one.

Existing Customers, It’s Your Turn

TSB hasn’t forgotten about its current customers, particularly those looking at product transfer deals. If you’re an existing customer at the crossroads of your mortgage term, aiming to switch to another fixed rate for two, three, or five years, your rates are set to climb by up to 0.2 percentage points.