If you’ve saved up enough for a deposit on your first home (or decided to sell your current property), getting a mortgage will likely be the next step in your house buying journey. TSB is one of the many great UK mortgage providers to consider. Below we take a look at what exactly they can offer.

Good to know about TSB

Founded in the 1980s, TSB currently has its headquarters in Edinburgh and is one of the UK’s largest mortgage providers. They’re a popular option when it comes to fixed-rate mortgages. In fact, they recently won the What Mortgage Best Fixed Rate Mortgage Award for 2020. 

What kinds of mortgages do TSB offer?

Whether you’re getting your foot on the property ladder or you’ve bought and sold multiple properties in the past, TSB has an extensive range of mortgage products up for grabs. Here’s a small sample of TSB mortgages you might be eligible to apply for:

TSB Buy-to-let mortgages

If you already own a home and are looking to expand your property portfolio with some buy-to-let properties, this type of mortgage is ideal. Buy-to-let mortgages are specifically for houses or flats that will be rented out rather than lived in by their owner. 

TSB offers buy-to-let mortgages at a range of different fixed rate deals. There are a few conditions to think about, including the following: 

  • You’ll need to be over 25 years old

  • You’ll only be able to borrow up to 75% of the property’s worth (65% if it’s a new build)

  • You’ll only be able to take out a maximum of 3 buy-to-let mortgages with TSB

Some of the perks of choosing a buy-to-let mortgage with TSB includes the fact you’ll get a free home valuation. If you’re switching your current buy-to-let mortgage from another provider, TSB will also cover any standard legal fees.

TSB Remortgages

Sometimes it might be necessary to remortgage your house, maybe because you’ve come to the end of your original mortgage term. You might also be unhappy with your current rate or suspect the value of your property has changed. TSB offers remortgage deals to those who want to switch their existing TSB mortgage or change from another provider. 

Some of the remortgaging perks through TSB include offering free standard legal fees and no valuation fee if you’re borrowing less than £999,999. You’ll typically be able to borrow up to 85% of your property’s total worth, too.

Note that some providers may charge you a fee if you switch from one of their mortgages to TSB before your current mortgage term ends. You’ll find details of this in your paperwork. 

TSB Interest-only mortgages

Another popular option for those looking to buy a second property is an interest-only mortgage. These mortgages allow you to keep your monthly payments to a minimum by only paying monthly interest instalments. The loan itself is then paid back in one lump sum at the end of your mortgage term.

If you opt for an interest-only mortgage with TSB, the maximum you’ll be able to borrow is 75% of your property’s worth. You’ll need to provide some sort of repayment plan when applying to prove that you’ll be able to pay back the loan once your mortgage term is up.

How much can I borrow with a TSB mortgage?

As well as choosing a specific mortgage for your needs, you’ll also want to work out exactly how much you might be able to borrow from TSB.

This is usually estimated using things like your annual income, your average monthly expenses and the amount you have saved for a deposit. You can get a good idea of what you might be able to afford using our online mortgage calculator. Typically, you can expect to borrow up to 4.75 times your annual income with TSB. If you’re buying with someone else, this will be based on your joint income.

You’ll additionally want to consider your loan to value (or LTV) ratio. This is the amount you’d like to borrow from your home’s total value written down as a percentage. For example, suppose you get an 85% mortgage. In that case, this means you’ll borrow 85% of the property’s worth from a mortgage lender and provide the additional 15% yourself as a deposit.

With TSB, the maximum LTV available will depend on your individual circumstances and the type of property you’re looking to buy. In general, they offer 65%, 75%, 80%, 85% and 90% LTV mortgages.

TSB mortgage rates

When we talk about mortgage rates, we’re referring to the interest you’ll typically pay on top of your monthly loan repayments. How much interest you’ll pay on a TSB mortgage will vary depending on which type you take out. Here’s some information about the three basic types of mortgage rate you can expect to be offered with TSB:

TSB fixed-rate mortgages

A fixed-rate mortgage is when the interest rate remains the same every month for the duration of your mortgage term.

With TSB, they offer fixed-rate mortgages for 2, 3, 5, or 10 years. During this time, your monthly interest payments and loan repayments should remain the same, allowing you to plan your finances in advance. 

While fixed-rate mortgages are ideal for budgeting, they almost always have limits on things such as your overpayment options. Once your fixed-rate mortgage term ends, you’ll usually be switched to TSB’s homeowner variable rate. 

TSB tracker-rate mortgages

Tracker-rate mortgages are generally fixed in line with the Bank of England Base Rate. This is set out by the Bank of England’s Monetary Policy Committee and revised about 8 times a year.

TSB tracker-rate mortgages track the Base Rate and can go up and down, just as it does. This means you could end up paying a low rate, or it could end up being higher than you’ve budgeted for. You’ll usually get an advanced warning if the rate is set to change, allowing you to plan ahead if needed.

TSB variable-rate mortgages

A variable-rate mortgage is similar to a tracker-rate in that it can go up or down. Nevertheless, it doesn’t follow the Bank of England Base Rate. Instead, the rate is set by the bank.

TSB’s Homeowner Variable Rate is currently set at 3.59% for homeowners and 4.44% for buy-to-lets. It’s the rate you’ll usually be switched to once your fixed-rate mortgage term ends (note this is only for mortgages that started after 1 June 2010). 

Moving home with a TSB mortgage

If you’re selling your current property but want to hang onto your mortgage for your new place, this is entirely possible with TSB.

Known as porting your mortgage, it’s an attractive option if you were happy with your previous mortgage rate and term. Having a consistent interest rate allows you to budget better and not adjust your usual monthly spending. 

To find out if you’ll be able to port your existing TSB mortgage, you’ll need to look at your mortgage documents. Not every mortgage is eligible; speak to a TSB advisor if you’re unsure about your specific mortgage.

TSB mortgage holidays

If you’re having a tough time financially, you may want to take out a mortgage holiday. As its name suggests, this is when you have a little break from your monthly mortgage payments. 

TSB calls them repayment holidays and offers them to most of their mortgage customers. You can take out a mortgage holiday for 3 months twice – meaning the total break you can take is 6 months. During this time, you won’t have to pay anything towards your mortgage. However, your interest will still keep adding up, and your payment amounts after the holiday period ends will be adjusted to reflect this. 

While you don’t have to make any repayments during a mortgage holiday with TSB, they encourage customers to pay any amount to help keep interest rates low.

TSB mortgage overpayments

On the opposite end of the scale: mortgage overpayments. This is when you pay more than your monthly repayment amounts to pay off your mortgage quicker. 

TSB allows overpayments either by increasing your monthly payments or through one-off lump sums. There are some restrictions. For example, you’ll only be able to overpay by 10% of your mortgage’s total value every year with some mortgages. If you go beyond this, you’ll end up being charged an Early Repayment Fee. 

You’ll find details about overpayments in your TSB mortgage documents. Alternatively, you can speak to one of their advisors for accurate information on your overpayment options. 

Getting a TSB mortgage

Suppose you’ve compared mortgages and decided TSB is the right fit for you. In that case, you’ll be able to book an appointment with a mortgage advisor. This can be done over the phone or in-person (currently over a video call). 

Once the advisor has confirmed that you’re eligible for a TSB mortgage, you’ll start your application.

Mortgage applications with TSB

To start your mortgage application with TSB, you’ll need to have a range of documents ready. This includes: 

  • Evidence of income, either in payslips or tax returns if you’re self-employed

  • Proof of ID and address

  • Evidence of your deposit 

  • An agreement in principle (see below)

  • Proof of any other income, e.g. child support, income support, private pension

At this stage, TSB will also complete a full credit check. If you have bad credit, this could severely lower your chances of receiving a mortgage offer.

Agreement in principle

An agreement in principle is something you’ll need to get before you begin the mortgage process. It’s essentially a document that acts as proof to a mortgage lender that you can afford your new home loan. 

TSB calls it a Mortgage Promise and lets you apply for one within 15 minutes on their website. It assesses your personal finances, considering your salary, average expenses, any debt you have, and how much you have saved for a deposit. TSB will also perform a soft credit check (although this won’t affect your credit score). 

Once you’ve received your Mortgage Promise from TSB, you’re not under any obligation to then apply for your mortgage through them. You could choose to compare different mortgages and ultimately end up with another provider.  

TSB mortgage timetable

On average, it takes most lenders about 14 days to approve a mortgage application and send out an offer. This could be more or less time, depending on the current housing market and whether you’ve provided all the relevant documents. 

If you fail to provide all the paperwork the first time around, TSB may request more. For this reason, most people go through a surveyor or a mortgage broker who will make sure you’ve sent off all the relevant documents from the get-go. 

Once you’ve received your mortgage offer from TSB, this will be valid for 6 months. You’ll sign a TSB mortgage deed to confirm you’re happy with the terms of your offer. After this, TSB will usually perform a home valuation on the property you’re buying to check it’s worth what you’re seeking to borrow. 

Your surveyor will also carry out conveyancing (legal checks) and organise surveys (for example, you might need a building survey if your property is old). This process typically takes 8-12 weeks. When this is all done, you’ll complete on your property and arrange a move-in date!

TSB mortgage reviews

TSB is one of the UK’s major mortgage lenders, and they currently hold about 2.2% of the total mortgage market. In the Which? Guide survey for 2020, they ranked 18th out of 23 mortgage lenders. Customers particularly liked their transparency, clear payment statements, and good complaint handling.

Compare TSB mortgages

Before you begin your application, you can compare mortgages from both TSB and a range of other UK lenders. You’ll also find more helpful information on the process in general and individual lenders on our detailed mortgage page.