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TSB launches 95 per cent mortgage deals

Christina Hoghton
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Christina Hoghton

Borrowers with a deposit of 5% have seen their choice of mortgages boosted in recent weeks

TSB has launched back into 95 per cent loan to value (LTV) but is excluding self-employed and contractor borrowers from its range.

Rates start from 4.04 per cent and deals come with £500 cashback.

TSB is offering the deals outside of the government’s 95 per cent mortgage guarantee scheme.

Borrowers can choose from a five-year fixed rate which has a choice of three and five-year early repayment charges which are open to both first-time buyers and house purchases. A zero fee and £995 fee option are available. Rates for the five-year fix with three-year early repayment charges start from 4.24 per cent.

A stepped down first-time buyer deal, with zero fee, has annually reducing rates until 31 August 2026. In year one the rate is 4.44 per cent and in the final year the interest rate is 4.09 per cent.

A ten-year fixed rate is on offer between 85 per cent and 95 per cent LTV, with a five-year early repayment charge. The deal is priced at 4.45 per cent and has no product fee.

Lending above 85 per cent LTV can only be secured on houses and bungalows.

Borrowers who earn £40,000 or less will be subject to an income multiple of 4.25 times earnings while those earning more than £40,000 will be offered a mortgage of up to 4.49 times their income.