‘It’s starting to feel like the walls are closing in’ as TSB increases fixed rates by up to 0.25%

Ahead of tomorrow’s inflation data, TSB has just announced that, from Wednesday 20 March, it is increasing fixed rates by up to 0.25% across its residential, product transfer and additional borrowing ranges.

TSB used to be the bank that “likes to say yes,” but now it quite clear they are now “more interested in saying no,” a broker has said.

Steven Neale, director and owner at SN Mortgages said, “Some lenders are raising rates while others are lowering them.

“Is it any surprise borrowers are confused about which way interest rates are going?

“A 0.25% rise may not seem much on the cost of a mortgage but add that to the already high costs of heating bills, food prices, Council Tax, insurance premiums and you can understand why mortgage arrears are up, credit card balances are increasing and people are struggling to keep a roof over their heads.

“Rates need to come down now before more homes are repossessed, putting further strain on the Government to house these people.”

Ken James, director at Contractor Mortgage Services said, “TSB used to use the slogan, “The bank that likes to say yes”, but this is a clear nod that they are currently more interested in saying no.

“It’s hard to know if this this increase reflects their thoughts on the inflation data that will be published tommorow.

“The increases are significant and make the Coventry decision last week to reduce rates stand out even more against this backdrop of rate rises.

“Let’s hope the inflation data tomorrow swings the pendulum back in favour of cuts rather than more increases as it’s starting to feel like the walls are closing in.”

Lewis Shaw, owner and mortgage expert at Shaw Financial Services said, “Another one bites the dust.

“We appear to be unable to move away from the fixed rate fandango at the moment with mortgages becoming more expensive just when the property market is meant to come alive ready for the spring bounce.

“The last vestige of hope is that the inflation data tomorrow is positive, and the Bank of England meeting on Thursday provides a little more positivity, especially around their first rate cut.

“Buyers and sellers alike need something to hang their hats on, and talks of a rate cut might just do it.”