From tomorrow, existing customers can access a 5.95% one-year fixed rate for residential or buy-to-let (BTL) deals available up to 75% loan to value (LTV).
The lender is also relaunching a two-year tracker for residential and BTL borrowers with the minimum term requirement of two years removed.
Rates are being increased on select first-time buyer, homemover and product transfer deals by up to 0.25%.
Short-term certainty
TSB isn’t the only lender to have a one-year fixed rate option, says Nicholas Mendes, mortgage technical manager at John Charcol.
Precise Mortgages offers a fee-free one-year fixed-rate deal at 5.69% up to 75% LTV, while Kensington Mortgages has a one-year fix at 6.04% also up to 75% LTV with a £999 fee.
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“A one-year fixed-rate mortgage can appeal to borrowers who need short-term certainty and flexibility,” said Mendes.
He continued: “It locks in a fixed rate for a year, providing predictable repayments without potentially being tied into a longer higher rate.
“After the fixed period ends, borrowers have the freedom to reassess their options – whether that’s switching to another deal with TSB or remortgage with a new lender. This short commitment period is ideal for those who want to avoid being tied into a long-term mortgage, especially in a market where interest rates are expected to be falling.”
The downside, adds Mendes, is having to pay more refinancing costs after 12 months.
The volume of mortgage deals on the market has hit 6,645, according to Moneyfacts. Deal numbers rose for the first time since July.
With the exception of July and August, this is the highest count since February 2008, when mortgage deal volumes reached 6,760.
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: TSB launches one-year fix and ups rates
