TSB becomes latest bank to press pause on some mortgage lending

The bank said it was removing some mortgages from sale as of 4pm on Monday.

TSB said it was removing some mortgages from sale as of 4pm on Monday (PA) (PA Archive)

TSB has become the latest lender to press pause on sales of some of its mortgages.

The bank said it was removing some mortgages from sale as of 4pm on Monday.

The changes apply to products sold both direct and via brokers and TSB is expecting to reintroduce residential deals on Wednesday.

For residential mortgages, TSB said it is temporarily removing two, three and five-year fixed house purchase and remortgage products with a £995 fee. It will retain a full range of products without a fee.

In the buy-to-let market, TSB is pausing sales of two-year fixed house purchase and remortgage products with a £1,995 fee and a £0 fee.  It will give further information on buy-to-let products in due course.

Several lenders have temporarily removed mortgage products before putting them back on sale in recent weeks, as mortgage rates have increased, amid expectations that interest rates will remain higher for longer.

This announcement by TSB comes as no surprise, and reflects the prevailing circumstances

Anil Mistry, RNR Mortgage Solutions

Nationwide Building Society, HSBC UK and NatWest are among many lenders to have increased some of their mortgage rates recently.

TSB’s move came as the average two-year fixed-rate mortgage on the market topped 6% on Monday, according to data from Moneyfactscompare.co.uk.

The bank informed brokers of its intentions.

Speaking on website Newspage, Anil Mistry, director and mortgage broker at RNR Mortgage Solutions, told the website: “This announcement by TSB comes as no surprise, and reflects the prevailing circumstances.”

A statement from TSB said: “TSB’s mortgage rates and product range are based on a number of factors including the cost to TSB of borrowing and the current situation within the mortgage market.”