TSB has launched a three-year fixed-rate purchase and remortgage range, as borrowers search for options to combat rising interest rates,

The bank’s movers and first-time buyers’ offers range from 60% loan to value to 90% LTV, with rates between 5.94% and 6.29% and fees at £995.   

Its remortgage deals range from 60% LTV to 85% LTV, with rates between 5.94% and 6.09% and fees at £995.  

The move from the bank comes as borrowers look for cheaper options as 800,000 fixed-rate deals are due to end in the second half of this year, according to banking trade body UK Finance, with around 1.6 million deals ending in 2024.  

Many of the homebuying market’s core two- and five-year deals were signed at sub-2% mortgage rates, but both of these terms now are well above 6%, as the Bank of England base rate has lifted 13 times since December 2021. The current central bank base rate is 5%.  

This has left homeowners continuing to sign higher two-year deals, while hoping that mortgages will ease over the period.  

Other borrowers have sought different options, such as tracker, part-and-part, interest-only periods and three-year loans as interim bets, also hoping that fixed home loan rates fall in the short to medium term.