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TSB raises mortgage rates by 0.4 per cent

Christina Hoghton
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Christina Hoghton

Mortgage rates have started to creep up as economists predict a Base Rate rise could be on the cards

TSB has increased its two-year fixed rates by 0.40 per cent on all deals up to 90 per cent loan to value (LTV).

The rate rises apply to first-time buyer and house purchase borrowers.

Rates now begin from 1.19 per cent for a two-year fixed at 60 per cent LTV.

The increase in rates comes as the Office of Budget Responsibility warns that homeowners should expect their annual mortgage interest costs to rise 13 per cent by 2023 as the Bank of England Base Rate is expected to rise to tackle growing inflation.

Remortgage deals have been re-priced to increase interest rates by up to 0.35 per cent.

Meanwhile, TSB has removed its three-year fixes with two year early repayment charges for both purchases and remortgages.

A rate reduction has been applied to the bank’s five-year fixed rate deal available up to 95 per cent LTV, available to first-time buyer and house purchase borrowers, by 0.20 per cent.