TSB launches new five-year fixed mortgage – with no early exit fee after three years

The bank has today announced it is launching an “industry first” – a five-year Fix and Flex Mortgage (zero to 80 percent LTV). This mortgage will offer borrowers the reassurance of a fixed rate for five years, without the requirement to be tied in for that time frame.

According to the research, 33 percent of Brits are now saving more for post lockdown life.

Roland McCormack, TSB’s Director of Mortgages said: “We understand that now, more than ever, people’s circumstances can change.

“Fix and Flex offers our customers the comfort of a fixed monthly payment with the ability to leave their mortgage deal after three years, without having to worry about an early repayment charge.

“We want our customers to feel money confident and more in charge of their finances when they bank with us and this new product is designed to help them do exactly that.”

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The Five-Year Fix and Flex will offer market competitive rates from 1.99 percent, with no product or application fees, TSB said.

Commenting on the news, Rachel Springall, Finance Expert at Moneyfacts, said: “It is great to see a well-known lender supporting borrowers at a time of great uncertainty and a flexible mortgage can give borrowers some peace of mind.

“Interest rates are very competitive on mortgages right now, and consumers may well wish to lock into a longer-term fixed rate if they fear interest rates will rise in the coming years.

“However, by locking into a five-year fixed deal, this usually means paying an early repayment charge until the initial rate has come to an end if borrowers decide to switch early.