Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
TSB raises rates by up to 25bps as Kensington lifts buy-to-let pricing
TSB is raising more rates tomorrow by up to 25 basis points, following a round of repricing last week, while lender Kensington is also putting up buy-to-let rates.
The moves come as average fixed rates climb to their highest levels in months, which will matter to landlords, letting agents and inventory clerks tracking financing costs across the rental market.
What TSB is changing
TSB is increasing product transfer and additional borrowing rates by up to 25bps for residential borrowers, and by up to 20bps for buy-to-let customers. The changes take effect tomorrow.
Kensington follows on buy-to-let
Kensington is also raising buy-to-let prices tomorrow, but has not revealed by how much. For agents and clerks working with portfolio landlords, further buy-to-let repricing adds to the pressure on rental market economics.
Wider market context
Last week saw substantial moves by major lenders, which pushed the average five-year fixed rate to its highest level since October 2023, when the market was still reeling in the aftermath of the Liz Truss mini-Budget.
Moneyfacts also revealed on Friday that the average two-year fixed rate had jumped by 17bps over the week, reaching its highest level since April.
What it means for the rental sector
Rising mortgage costs for residential and buy-to-let borrowers alike can influence landlord decisions on rents, refinancing and portfolio management. Letting agents and inventory clerks should be aware that further rate movement from major lenders may affect the clients they serve, though the full impact will depend on how individual landlords respond.
Source: Mortgage Strategy