See the latest announcement from TSB below. Note that you can access TSB via the Brilliant Solutions mortgage club but the lender does place some restrictions on access. Contact us for details.
TSB Mortgage Product Guides are available here but check the date to ensure it has been updated to reflect the announcements below.
Important news from TSB: Residential LTI raised to 5 times income and more improvements to lending criteria
TSB has made the following improvements to lending criteria effective from 25 April 2022:
- Increased Residential loan to income multiple to 5 times
Raised the income threshold to £50,000 (previously £40,000) and increased the income multiple for loan to value, less than or equal to 85%, from 4.75 to 5 times income. These new limits will apply to both employed and self-employed Residential applications.
Removed the 4.49 times loan to income cap for self-employed applicants.
- Introduced lower interest coverage ratio (ICR) on Buy to Let for basic rate taxpayers
Reduced the Interest Coverage Ratio (ICR) for basic rate employed taxpayers to 125% to help applicants borrow more or use a smaller deposit (existing loan to value limits still apply). The existing rate of 145% still applies to higher rate taxpayers and self-employed applicants.
Initially, this will only be available to employed applicants and applies to joint applications where both applicants must be employed or on pension income. We expect to open this up to self-employed applicants soon.
Residential stress rates
Residential stress rates have been updated to reflect the Bank of England base rate increase announced on 17 March 2022.
Applicant type | Stress rate |
Residential (excluding First Time Buyers) | 7.25% |
First Time Buyer | 6.25% |
Like for like Remortgage (excluding Buy to Let to residential) | 5.25% |
New Build maximum loan increased to 90% LTV
TSB has increased maximum loans to 90% LTV on New Build Houses and Bungalows effective from 25 April 2022.
After listening to broker feedback, 90% LTV is now available on all new build houses including Shared Ownership allowing up to 90% of the customer share of the purchase price.
To support this, the lender has launched the following New Build products:
- 5 Year Fixed, 85-90% LTV, First Time Buyer and House Purchase
- 5 Year Fixed, 85-90% LTV, Shared Ownership First Time Buyer and House Purchase
TSB is also helping First Time Buyers and Home movers by offering lower rates on new build properties with A-C EPC ratings.
Changes to Residential products
From 29 April, TSB has made changes to Residential product range.
- 2 and 5 Year Fixed, 0-95% LTV, First Time Buyer and House Purchase increased by up to 0.40%
- 2 and 5 Year Fixed, 0-90% LTV, Remortgage increased by 0.30%
- 3 Year Fixed (2 Year ERC), 0-90% LTV, First Time Buyer and House Purchase increased by 0.40%
- 3 Year Fixed (2 Year ERC), 0-85% LTV, Remortgage increased by up to 0.30%
- 5 Year Fixed, 80-90% LTV, New Build First Time Buyer and House Purchase increased by 0.30%
- 10 Year Fixed, 0-75% LTV, First Time Buyer, House Purchase and Remortgage increased by up to 0.50%