17 December 2014

Half of homeowners are worried about an interest rate rise

TSB helps homeowners by launching Fix and Flex Mortgage.

Over half* (55%) of all British homeowners with a mortgage are worried about an increase to the Bank of England's base rate and the impact that it will have on their mortgage repayments, according to new research from TSB.  Of people on a variable rate, or a fixed rate that ends next year, those concerned climbs to almost two-thirds (62%).

The research also showed that two-thirds (65%) of people would consider taking out a 10 year mortgage but of those, nearly three-quarters (72%) are concerned about being locked in for 10 years or having to pay an early repayment charge should they need to change their mortgage deal.

Help is at hand from TSB

To help ease people's concerns, TSB has today launched a new 10 year Fix and Flex mortgage.  Unlike most 10 year deals, Fix and Flex offers the reassurance of a fixed rate over a longer term yet allows homeowners to remain flexible by enabling them to refinance or leave the mortgage after five years, without having to pay an early repayment charge.

Key features of Fix and Flex

Market leading rates from 3.44%.

  • Mortgages available up to 90% loan-to-value.
  • No product or application fees.
  • Available to first time buyers , those wishing to move home and homeowners looking to remortgage.
  • Mortgage deal is portable for those moving to a new home.

A different kind of fix

People want peace of mind that their mortgage payments won't increase over the term so the rate is fixed for 10 years ensuring a set monthly repayment.

However, TSB understands that life changes - families grow, children leave home and people relocate for new jobs - so Fix and Flex offers people the ability to leave the mortgage deal after five years without having to worry about an early repayment charge.

Ian Ramsden, TSB Mortgages Director, says:  "Our research shows that millions of homeowners up and down the country are worried about an increase in the Bank of England's base rate and the knock on effect it will have on their mortgage repayments.

"People looking for stability at a great value will definitely benefit from Fix and Flex.  All the advantages of a great rate, fixed over the long term yet the flexibility to move after five years should their circumstances change."

Appointments with qualified TSB mortgage advisors are available in branches across Britain or alternatively people are welcome to apply by telephone, or begin their application online.

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Notes to editors

*TSB research based on a Consumer Intelligence survey of a representative UK sample of 1,794 UK adults polled 10-15 December 2014. 

Mortgage available on a range of different loan to values - details below:

                        
10yr Fixed Product
 
 Loan to value Interest rate Product fee Cashback**Early repayment charge  Min loanMax loan APR 
House Purchase and first time buyer
   
0-60%3.44%-

5% to 30/04/2016 
4% to 30/04/2017
3% to 30/04/2019
1% to 30/04/2020

 £5,000 £1m 3.7% 
60-75%3.49%  £5,000 £1m 3.8%
75-80%3.84% £5,000 £1m 4.0%
80-85%4.29%  £5,000 £1m 4.3%
85-90% 4.74% £5,000 £750k 4.7% 
 Re-mortgage0-60%3.49% £500 £25,000 £1m  3.7% 
60-75%3.59% £500 £5,000  £1m  3.8%
75-80%3.94% £500  £5,000  £1m 4.1%
80-85%4.39% £500  £5,000  £1m  4.5%

 

** Customer needs to have a current account with TSB to qualify - available on all remortgages.

TSB Bank plc is a British bank which provides customers with a range of services and products such as current accounts, savings, credit cards, loans, mortgages and insurance.

With a presence on 631 high streets right across Britain, TSB Bank plc has approximately 8500 staff looking after £22 billion on behalf of its 4.5 million customers.  Our purpose is to support safe and sustainable economic growth in the surrounding communities, serving only individuals and local business customers.

For further information about TSB Bank plc, please visit our website www.tsb.co.uk.