TSB has followed other major lenders in hiking mortgage rates this week – and theirs are pretty big.
First-time buyer, mover and remortgage rates are going up by as much as 0.45%.
Shared ownership/equity products will rise by up to 0.75%.
The lender is also withdrawing some tracker mortgages – and all house purchase and remortgage products (two and five-year fixed) without a fee.
It follows upward moves from NatWest, Barclays, Accord, Leeds Building Society and HSBC on Monday, and Coventry last week.
They are responding to swap rates – which dictate how much it costs to lend money – rising on the back of higher-than-expected US inflation data, and concerns this could delay interest rate cuts there.
US trends often materialise elsewhere – though markets are still expecting a base rate cut from 5.25% to 5% in the UK in June.
Ken James, director at Contractor Mortgage Services, told Newspage: “As lenders scramble for safety, the mortgage landscape appears increasingly grim.
“With swap rates on the rise, lenders are transparent about their need for profit margins, prompting them to hike up their rates accordingly.
“The significant uptick in rates for shared ownership mortgages suggests that TSB is distancing itself from this sector, leaving aspiring homeowners with even fewer options.
“While TSB may be the latest target of criticism, they are not alone in seeking refuge in lifeboats, as more lenders follow suit.
“The mortgage market is once again thrown into turmoil, echoing past upheavals.”
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