The ‘Fix and Flex’ mortgage is available up to 80% loan-to-value and is aimed at providing borrowers with the reassurance of a fixed-rate without being tied in for too long.
TSB said its launch was timely as it came when almost 40% of Brits were worried about their finances because of the Covid-19 pandemic.
The lender’s research also found 33% of adults were saving more for post-lockdown life. TSB said this demonstrated a need to manage money carefully.
Roland McCormack, director of mortgages at TSB 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.”
Residential remortgage customers can take advantage of the product from today, but first-time buyers and home movers will have access from 17 July. Rates start at 1.99% and there are no product or application fees.