First-time Buyers

TSB launches five-year fixed mortgage with no early exit fee

Christina Hoghton
Written By:
Christina Hoghton

Borrowers can take the security of a five-year fixed rate alongside the flexibility to switch to a new deal after three years

TSB has launched a five-year fixed mortgage which allows borrowers to exit before the end of the product term with no early repayment charges (ERCs).

Developed in response to the financial uncertainties caused by the coronavirus pandemic, the Fix and Flex mortgage is available up to 80 per cent loan to value (LTV) and allows customers to refinance or exit after three years at no cost.

The mortgage will be available for residential remortgage customers from today and from 17 July, will be open to first–time buyers and home movers.

Rates start from 1.99 per cent and the mortgage has no product or application fees.

This product comes as a recent TSB survey of 2,000 Brits showed 40 per cent were worried about their finances since Covid-19 began, and a third were saving more for post-lockdown life.

Roland McCormack, TSB’s director of mortgages said: “We understand that now, more than ever, people’s circumstances can change. Fix and Flex offers our customers the comfort of a fixed monthly payment with the ability to leave their mortgage deal after three years, without having to worry about an early repayment charge.

“We want our customers to feel money confident and more in charge of their finances when they bank with us and this new product is designed to help them do exactly that.”