TSB reduces stress rates and enhances self-employed LTI multiples

From today, TSB has reduced its stress rate to 6.75% (or 1% above the product rate, if higher) on all residential mortgage applications.

The new rate has been reduced by up to 2% and is expected to increase affordability on a typical joint application by around £30,000, based on a joint income of £75,000 and loan-to-value of 90%. 

The new rate will apply to all TSB customers purchasing a residential property – whether they’re buying a first home or moving to a new one.  

Higher loan-to-income multiples for self-employed customers

TSB has also increased the loan-to-income multiple on mortgage lending for self-employed customers earning over £75,000.

Self-employed customers earning £75,000-£100,000 can now borrow up to 5 times their income for mortgages with a loan-to-value of 85% or lower. Additionally, self-employed customers earning £100,000 or more can now borrow up to 5.5 times their income for mortgages with a loan-to-value of 85% or lower. These have been increased from 4.49 times income. 

TSB’s secured lending director, Craig Calder, said: “TSB customers now have more flexibility to borrow more – making their money go further towards their first home, or their next home. 

"At TSB, we know that homeownership can feel out of reach for some, but these small changes are really important ones that will boost affordability and open the door for more people to get on the property ladder.”