Should you get a mortgage from TSB?

£7 billionLent to home owners in 2017

TSB is one of the UK’s largest mortgage lenders, responsible for 2.7% of all mortgage lending in 2017 - which is around £7 billion.1

Originally founded in 1985, TSB is headquartered in Edinburgh and has more than 4.6 million customers.2

TSB mortgage deals are available to a wide range of people, but they generally won’t lend to you if you have particularly bad credit.

See how they compare to other mortgage lenders:

Is TSB a good mortgage lender?

1,217Upheld complaints received by the financial regulator.

We looked at TSB’s customer complaints record between July and December 2017. During this period the Financial Conduct Authority (the financial regulator) received 1,217 officially upheld complaints from TSB mortgage customers.3 That’s around 0.4% of customers and matches the average across major lenders.*

*The number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How long does a TSB mortgage application take?

20 daysAverage speed of Trussle customer’s mortgage application with TSB.

Between July 2017 and July 2018, the average speed that TSB processed a Trussle customer’s mortgage application was 20 days.* That’s longer than the 18-day average across all the major lenders we’ve submitted applications to.

Bear in mind that the speed of application will vary depending on your own personal circumstances and the lender’s present day-to-day performance. In some cases, applications can be approved by the lender within 24 hours, while some can take weeks or even months. This can also be impacted by the quality of application submitted, which is why you may want to consider using a mortgage broker. The average quoted speed therefore may not reflect your own experience.

*The number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How much could I afford to borrow from TSB?

4.5 xMaximum annual income.

TSB could lend up to a maximum of 4.5 times income before tax, depending on your circumstances.

These details were last updated on 13th July 2018.

Current mortgage rates from TSB

Lowest 2 year fixed rate


Initial rate:
1.64%
Annual Percentage Rate of Charge (APRC):
3.90%

Based on securing a mortgage of £181,600 over a 25 year term. Reverts to SVR after initial 24 month period, costing £963.36 per month for 276 months. Total amount payable is £284,636.32 including interest and fees. This deal was last updated on 4th December 2018.

Lowest 5 year fixed rate


Initial rate:
2.04%
Annual Percentage Rate of Charge (APRC):
3.50%

Based on securing a mortgage of £181,600 over a 25 year term. Reverts to SVR after initial 60 month period, costing £942.17 per month for 240 months. Total amount payable is £273,546.40 including interest and fees. This deal was last updated on 4th December 2018.

Current Standard Variable Rate


Standard Variable Rate (SVR):
4.24%

This rate was last updated on 4th December 2018.

Current mortgage deals from TSB

First-time buyer


Lowest initial period true cost deal:
£18,593.24
Monthly payment:
£773.26
Upfront fee:
£35.00
Initial rate:
2.04%
Standard Variable Rate (SVR):
4.24%
Annual Percentage Rate of Charge (APRC):
3.90%

Reverts to SVR after initial 24 month period, costing £966.65 per month for 276 months. Total amount payable is £285,388.64 including interest and fees. This deal was last updated on 4th December 2018.

Remortgage


Lowest initial period true cost deal:
£18,487.16
Monthly payment:
£768.84
Upfront fee:
£35.00
Initial rate:
1.99%
Standard Variable Rate (SVR):
4.24%
Annual Percentage Rate of Charge (APRC):
3.90%

Reverts to SVR after initial 24 month period, costing £966.24 per month for 276 months. Total amount payable is £285,169.40 including interest and fees. This deal was last updated on 4th December 2018.

Frequently asked questions about TSB mortgages

This information was last updated on 16th July 2018.

Do TSB allow overpayments?


They do. You can increase the amount you pay each month, or pay part of your mortgage off with a single lump sum.

If you choose to pay a lump sum, you have three options available. You can:

  • leave your monthly payments as they are and wait for TSB to adjust your payments
  • ask TSB to reduce your monthly repayments yourself, across the same mortgage term
  • ask TSB to maintain your monthly repayments and reduce your mortgage term

Remember that depending on your mortgage, you may need to pay an Early Repayment Charge.

When will TSB expect the first mortgage payment?


This varies, but TSB will be in touch once your property purchase has completed. They’ll send you a letter that includes exactly how much your first payment will be, and when they’ll require it.

Bear in mind your first payment may not be needed until more than a month after your completion day. If this is the case, your first payment may be larger than you were expecting to cover the longer period.

When do TSB mortgage offers typically expire?


They typically expire after six months. If you’re unable to complete the purchase of your property within this timeframe, TSB recommend you contact them directly to talk about an extension.

Will TSB immediately release mortgage funds?


On the agreed completion date, yes.

Your solicitor and the solicitor for the house-seller will need to agree a date on which to complete the transaction, and let TSB know. The bank will then send the funds to the mortgage conveyancer, who will oversee the finalised transaction. This should ensure there’s nothing preventing you from getting the keys and moving in.

Will I be able to manage my mortgage online?


You’ll be able to view your mortgage details, such as your up-to-date balance, using online banking or the TSB app.

To see any additional information, or to make changes to your mortgage, you’ll need to contact TSB over the phone or in branch.

What TSB rate will I revert to after the end of my fixed rate?


It varies depending which mortgage you choose and when you sign up, but most new customers will move over to TSB’s Homeowner Variable Rate. TSB will adjust this rate depending on underlying mortgage market conditions.

If you applied for your mortgage before 1 June 2010, or if you have a buy-to-let mortgage, you may be an exception to this rule.

Do TSB require that I get life insurance?


No, TSB doesn’t require you to take out life insurance.

The only insurance you’ll need to have is buildings insurance, which protects your property if the building itself gets damaged. Almost all major UK mortgage providers will require you to have buildings insurance as a safeguard against anything happening to their investment in your property.

Did TSB sell PPI alongside mortgages?


Yes, TSB did sell Payment Protection Insurance (PPI) to customers in the past.

But with recent changes to the way the FCA (the financial regulator) manages PPI, it’s no longer a hidden cost you’ll need to contend with. If you’d like to include the measure as an added protection for your investment, you can let TSB know. Otherwise, it won’t be included in your contract with them.

If you believe you’ve been mis-sold PPI by TSB, you can contact them directly and raise a complaint with their in-house team.