TSB Mortgage Review: Pros, Cons & Features

TSB mortgages: at a glance

TSB offers capital repayment and interest-only mortgages, and fixed-rate and tracker-rate options. TSB mortgages can be repaid over a term of up to 40 years and applied for online, over the phone, or at a TSB branch. 

TSB allows overpayments on its mortgages but an early repayment charge will be payable on some products if you exceed the maximum permitted overpayment limit. Typically this is 10% of your outstanding mortgage balance, but some TSB mortgages may allow more. 

TSB mortgage pros & cons

TSB mortgage overview

TSB is the tenth largest mortgage lender in the UK and part of the Spanish banking group Sabadell. The bank offers mortgages to first-time buyers, those looking to remortgage or move home, and buy-to-let mortgages to landlords. 

TSB mortgages are available for amounts of £5,000 and above, and for terms of between one and 40 years. Customer support is available online, over the phone, at TSB branches or through the bank’s mobile app. 

Product options	Capital repayment  Interest-only  Fixed rate  Tracker  85% loan-to-value or higher Right to Buy Shared Ownership
Term length	1 – 40 years
Minimum loan size	£5,000
Allows overpayments	Yes
Mortgages are portable	Yes
Ways to apply	Online, phone, in branch, broker
Customer service contact options	Online, phone, in branch, mobile app
Fairer Finance customer experience rating	56% (as at 31 October 2023)

Where TSB mortgages stand out

Low minimum mortgage amount 

If you need a relatively small mortgage, it’s possible to borrow as little as £5,000 from TSB. Some lenders we’ve reviewed set their minimum mortgage amount at £25,000 or even £50,000. 

Long mortgage terms

The maximum mortgage term of 40 years allowed by TSB is longer than some of the lenders we’ve reviewed allow, where 35 years may be the upper limit. However, a longer repayment period means you’ll end up paying more interest overall.

Access to government mortgage schemes 

If you’re considering using the Shared Ownership or Right to Buy scheme to help buy your home, TSB offers mortgages to eligible borrowers. 

Choice of application and support options

TSB welcomes applications either online, over the phone or in-person at one of its branches, and then offers access to customer support via the same channels, and through its mobile app.

Where TSB mortgages fall short

Fewer product options than some

If there’s a particular type of mortgage you have in mind, TSB doesn’t offer offset mortgages, discount mortgages, a family mortgage, or green mortgages. Mortgages for buyers using the First Homes scheme are also not available.

Entirely online applications not possible 

TSB lets you get an agreement in principle – or Mortgage Promise – online, upload documents, and sign your mortgage agreement electronically, but, unlike some other mortgage lenders, you can’t complete the entire application process online. A TSB adviser will always contact you over the phone at some point.

» MORE: Best mortgage lenders

What types of mortgages does TSB offer?

TSB first-time buyer mortgages

TSB offers mortgages for first-time buyers up to 95% loan-to-value (LTV) – meaning you could get on the property ladder with a 5% deposit. Fixed and tracker rate options are both available. 

TSB remortgages

If you want to remortgage to TSB, mortgages are available with no valuation fees and free standard legal work if you’re borrowing under £1 million. TSB remortgage options are offered up to 90% LTV if your mortgage amount is unchanged, or 85% LTV if you need to borrow more. 

TSB buy-to-let mortgages

TSB offers buy-to-let mortgages to new and existing landlords up to a maximum 80% LTV. You must be at least 25 years old and earn over £25,000 a year to be eligible to apply. 

TSB mortgage features

Repayment options

TSB offers mortgages on a capital repayment or an interest-only basis.

With a repayment mortgage, your repayments cover the interest you owe and pay off some of your original loan amount each month. If you never miss a repayment, your entire mortgage debt, including interest, should be fully paid off by the time your mortgage term ends. 

By contrast, interest-only mortgages require that you pay off the interest on your mortgage each month. Instead of paying off your original loan amount as you go, you need a plan in place to repay it in full at the end of the mortgage term. Endowment policies, stocks and shares, investment bonds, pensions, and selling a second home are some of the repayment strategies that TSB currently accepts. 

If you are considering an interest-only mortgage, be aware that this type of mortgage tends to be more difficult to obtain than a capital repayment mortgage and often comes with lower LTV limits. 

» MORE: Interest-only vs. repayment mortgages

Mortgage rates

TSB offers fixed-rate and tracker rate mortgages. With a fixed-rate mortgage the interest rate you pay is fixed for a period of time – usually two, five or perhaps 10 years. For the duration of your fixed-rate deal your monthly repayments are guaranteed to stay the same. The benefit is that you have certainty over the amount you must pay each month. 

At the end of your deal, you may decide to remortgage to a new mortgage deal. If you don’t, you’ll automatically move onto one of TSB’s standard variable rates (SVR) – which one depends on the mortgage you’re leaving behind, but it has the potential to rise or fall, and may be higher than your previous rate.  

If you opt for a TSB tracker mortgage, the mortgage rate you pay automatically tracks movements in the Bank of England base rate. This means your monthly repayments could go up or down, depending on what the Bank decides. Before taking out a tracker mortgage you should think carefully about the level of monthly repayments you could reasonably afford if rates were to increase.  

» MORE: See current mortgage rates

Loan-to-value ratios

TSB currently offers mortgages to first-time buyers and home movers up to a maximum 95% LTV, meaning there are options if you have a 5% deposit. If you’re remortgaging to TSB and don’t want to borrow anything extra, mortgages are available to a maximum 90% LTV. And if you’re remortgaging but with additional borrowing, the maximum LTV is 85%. 

» MORE: Why your LTV is important for a mortgage

Mortgage offers 

At the time of writing a mortgage offer received from TSB is valid for 180 days. During this time, the mortgage rate you’ve been offered should not change. If you are struggling to complete within this timeframe, TSB may allow an additional four weeks for completion to take place, on request.  

Making overpayments

It’s possible to make overpayments at any time on a TSB mortgage but it’s important to be aware that early repayment charges may apply on some mortgages. Where this is the case, the maximum you can usually overpay each year before an early repayment charge applies is 10% of your outstanding mortgage balance, as calculated on 1 January of that year. Some TSB mortgages may allow you to overpay more. 

Always check the terms and conditions of your mortgage before making additional payments. If you want to overpay your mortgage you can make a lump sum payment or increase your regular monthly repayments. 

» MORE: Mortgage overpayment calculator

Paying off your mortgage early

You’ll need to request a redemption statement from TSB if you want to pay off your mortgage early. This will show the amount you need to pay to completely clear your mortgage, including any early repayment charges and other fees that may apply.   

Porting your mortgage

If you already have a TSB mortgage and are moving home you may be able to take your existing mortgage with you. You’ll need to contact TSB if you want to port your mortgage in this way. Be aware that there may be instances where an early repayment charge applies.

Customer support

There are a number of ways you can contact TSB if you need customer support, including by phone,  online and in-branch. Live chat is also available but only during certain hours on certain days if you log in to mobile banking using the TSB mobile app. 

Mortgage calculators

The TSB website has a handful of mortgage calculators that can help you find out how much you may be allowed to borrow and get an estimate of monthly repayments. 

» MORE: Our mortgage calculators

Customer ratings

TSB receives a customer experience rating of 56% from Fairer Finance in relation to mortgages. This means the bank sits joint 21 out of the 23 lenders it has reviewed. The overall rating reflects how happy borrowers are with the lender, the trust that they have in the brand, and how the lender deals with complaints. How clearly lenders explain their products and the simplicity and clarity of the documents they give to customers are also assessed. 

This information from Fairer Finance was correct as of 31 October 2023.

How can I apply for a TSB mortgage? 

You can apply for a TSB mortgage directly yourself or through an independent financial adviser (IFA) or mortgage broker.  

If you want to apply directly, you can do so online, over the phone or at a TSB branch. However, even if you start the application process online, a mortgage adviser from TSB will always give you a call. Note that if you receive advice from a TSB mortgage adviser, they will only be able to recommend TSB mortgages.    

If you use an IFA to explore your mortgage options, they will be able to advise on mortgages from a range of different lenders. Check if the mortgages they can recommend come from a limited number of lenders or whether they offer whole of market advice.  

Be aware that the TSB mortgages an IFA has access to may be different to those that the bank offers to borrowers who apply directly. Sometimes mortgages available via IFAs may have more favourable terms, but the adviser may charge for their services. 

» MORE: Do I need a mortgage adviser? 

How to apply for a TSB mortgage

To apply for a mortgage from TSB you should:  

1. Prepare your documents: TSB will need you to share certain information. This will include payslips and bank statements from the last three months, your latest mortgage statement (if you already have one), and details of any existing loan commitments. If you’re self-employed, you’ll need three years’ of self assessments. 
2. Get a Mortgage Promise: By getting TSB’s equivalent of an agreement in principle online, you’ll have an idea of the amount you may be able to borrow, without affecting your credit score. 
3. Start your application: If you get a Mortgage Promise, you’re ready to speak to a TSB adviser and begin your full application. 

Seeking advice from a mortgage adviser can help you find a mortgage that is suitable to you. Advisers will also usually help guide you through the application process.    

How easy is it to apply for a TSB mortgage? 

TSB offers the option to upload mortgage documents and electronically sign your mortgage agreement to try to help make the application process faster and more convenient. You can also get a Mortgage Promise online.