YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
You can apply:
If it's been at least six months since you took out your mortgage
If your existing mortgage and further borrowing amount added together totals no more than 85% of the value of your home
For borrowing on an interest-only basis if your existing mortgage and further borrowing totals no more than 75% of your home's value
If the amount you'd like to borrow is more than £10,000
We'll take a look at your circumstances and let you know whether additional borrowing is suitable for you.
If any of your existing debt is on an interest-only basis you will need to provide us with evidence of your repayment plan(s), even if your additional borrowing is to be managed on a repayment basis. We will make an assessment of whether the repayment plan(s) meets our requirements. This includes checking to see whether it is likely to repay the amount you borrow on an interest-only basis.
Before you apply
Tracker-rate funds are limited and these mortgage deals can be withdrawn at any time.
Please check the date the tracker rate is valid until as, depending on when your new loan starts, it may not be exactly 2 years - it may be slightly more or slightly less.
When you're getting additional borrowing with us:
The most you can borrow against the value of your home is 85% in total. This means that your current mortgage and additional borrowing amount added together cannot be more than 85% of your home's value.
If your additional borrowing takes the total amount above 75% of your home's value, all of the new amount must be on a repayment basis.
After your new loan starts
Within six months of your new loan starting:
You cannot change the term over which your mortgage is due to run.
If you decide to let your property, you must end the mortgage you've taken out, paying any early repayment charge that applies, and switch to one of our buy-to-let mortgages.
At the end of your tracker rate period, the rate on your loan will switch to the Homeowner Variable Rate, which at that time, could be higher or lower than the rate you will have been paying and may vary over the remaining term of your mortgage.
Annual Percentage Rate of Charge (APRC)
APRC stands for Annual Percentage Rate of Charge and takes into account all the costs of a loan - giving you the overall cost for comparison. An APRC is calculated in a standard way to allow you to compare different mortgage offers, including those from other lenders. The APRC includes important factors such as:
The initial interest rate you must pay
How you repay the loan
The full length of the mortgage term
Frequency and timing of mortgage payments
Certain fees associated with the mortgage
It is important to remember that these APRCs are calculated using average figures so each individual loan will have slightly different APRC. The actual APRC that will apply to your mortgage will be calculated when you get a personalised quote.
Things to bear in mind
If a product fee applies, it can be added to your mortgage. No interest will be charged if you pay the fee within 30 days of your mortgage starting. If you choose not to pay the fee immediately, interest will be charged as part of your main mortgage, and this will affect your monthly payments.
Mortgage deals often change, so if you're returning to look at a product that you were interested in before, the pages shown are updated with the latest ones available.
These mortgages can be withdrawn at any time. Funds can only be reserved when we have your completed application.
TSB Bank tracks the Bank of England base rate.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Compare our two year tracker rate deals for existing customers borrowing more
Mortgage deals often change - this table is updated with our latest ones, but these may not be available by the time you apply. Our Mortgage Advisors will discuss the best deals available to you when you start your application.
There are a number of one-off fees that may apply when you arrange a mortgage with us. Your TSB Mortgage Advisor will explain which apply to your mortgage.
Mortgage account fee
This fixed fee covers the setting up, routine maintenance and closing down of the mortgage account. It will be paid out of part of your loan when your mortgage starts. No interest is paid on this part of the loan and it is repaid over your chosen mortgage term.
Some mortgage deals do not have mortgage account fees - this is shown in the Mortgage Rates table.
Options shown in Mortgage Rates table
Some of our mortgage deals have a product fee, others don't. In return for paying a higher fee or no fee and a higher rate. The Mortgage Rate Table shows what non-refundable product fee (if any) is payable.
Where a product fee applies, it will be added to your new mortgage. You can then pay the fee off if you want to, or leave it on your mortgage to spread the cost. If you pay the fee off within 30 days of the start of your mortgage, no interest will be charged on it. Or if you want to spread the cost, you can leave it on your mortgage and interest will be charged on it as part of your mortgage - this will affect your monthly payments.
If you're borrowing more or your mortgage is split across different deals, the interest on the product fee will be charged at the interest rate of your main loan account.
Depends on your property value
Unless your mortgage deal states otherwise, you will need to pay a property valuation fee when you apply.
Whether you can have a mortgage and the amount you can borrow will come down to what we think is a sensible amount to lend you and what we agree you can afford. To help us make a decision, we'll take a number of things into account.
Your income - you'll need to confirm this by showing us payslips, bank statements and/or HM Revenue and Customs documents.
Your outgoings - it's also important to think about your other financial commitments, and consider what effect future interest rate rises could have on your finances. This is to help guard against your mortgage becoming unmanageable. We will not agree a mortgage if there is any indication that you cannot afford it or keep up the payments.
Your age - you must be at least 18 years old to apply. Only your retirement income will be considered if you want your mortgage to go past your planned or state retirement age.
Records of previous loans or credit - we'll ask for your consent to search the information held about you and your financial arrangements held by credit reference agencies. This can include information passed on by banks and other financial service companies, as well as publicly available information such as the electoral roll. We'll use a credit reference agency and fraud prevention agencies to help assess your application.
The value of the property - limits apply to the maximum we will lend depending on the type of mortgage and property. This is detailed on the mortgage rate table above.
There are two ways to repay the money you have borrowed - on an interest-only or a repayment basis.
If you already have an interest only mortgage with us and you are now switching to a new deal you can apply to continue on an interest only basis up to the same amount as you already have on interest only. But if you are borrowing more at the same time, and your total mortgage is going to be more than 75% of your home's value, the new additional borrowing must be on a repayment basis.
With an interest-only mortgage, you'll only pay the interest on your loan amount each month. At the end of the mortgage term - usually 25 years - you'll still owe the capital, which is the amount you initially borrowed, so you'll need to have a plan in place to pay this off at the end of the term.
With a repayment mortgage, each monthly repayment pays off part of the capital as well as the interest, so your mortgage will be repaid in full at the end, as long as you keep up the repayments.
The monthly payments for a repayment mortgage are higher than for an interest-only mortgage, but this doesn't mean that interest-only is a cheaper option or that it'll help you afford a bigger mortgage. You'll also need to have a way of paying back the capital, so this needs to be taken into account when you work out what you can afford.
You can repay your mortgage over a term that suits you - from 1 to 40 years - although we only usually consider a mortgage term that ends before you reach 75. If your loan carries an early repayment charge, you won't be able to choose a term that finishes before the early repayment charge period.