We’ve put together useful information to help you explain to your customers what will happen to our variable rate mortgage products when the Bank of England base rate changes.
When does the Bank of England BoE base rate increase take effect and when will the money be taken from my customer’s account?
What notice do you give the customer?
The new variable rates will be effective for completed mortgage accounts from the first of the month following the rate change.
We’ll write to our existing mortgage customers, who have any element of their mortgage on a variable rate, at least four days before the change to advise them of their new monthly payments.
Which TSB products will be affected?
Our variable mortgage rates will change in line with the BoE base rate change. The products impacted will be:
- Homeowner Variable Rate
- Buy to Let Variable Rate
- Standard Variable Rate
- Tracker Rates
Will you pass on the whole interest rate raise to your customers?
Our variable mortgage rates will change in line with the BoE base rate change.
Will you increase your long term fixed rates?
Our fixed rate products are not directly linked to the BoE base rate, so it’s only our variable rate and base rate linked products we need to review after a change.
We’re constantly reviewing our fixed rate products to make sure they’re competitive and best for our customers.
My client is concerned about the rate changes and wants to do a product transfer. How do they do this with TSB intermediaries?
Currently we don’t offer a PT process through our intermediary channel, but this functionality will be available to brokers next year. If your client is considering transferring their product they can speak directly to TSB as below:-
- Residential borrowers have the option of completing online, in a branch, or over the telephone by calling 0800 056 1088.
- Buy-to-let borrowers should contact us over the phone by calling 0800 056 1088 or by visiting a branch.
How far in advance can they request this before their product matures?
We contact our existing customers three months before their existing rate matures to allow them time to discuss their options. Our correspondence includes the option of speaking to their Intermediary. Should the customer choose to complete a product transfer, we will waive the ERC’s in the last three months of their existing deal.
You can also refer your customers to
www.tsb.co.uk to find out how the Bank of England Base Rate changes may impact them.
And, you can speak to your dedicated BDM or call a TBDM for more information on 0345 307 3355.