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Today at 13:00 (March 7), TSB Intermediary is withdrawing selected transmission ranges for household goods and services and restarting these products at a rate 20 basis points higher tomorrow (March 8).
Brokers were given 25 minutes notice of rate changes, sparking anger among intermediaries and repeated calls for lenders to give 48 hours notice of rate changes.
TSB says it answers:
Residential
- A five-year fixed-rate home loan and a re-mortgage up to 85% of the loan value with commission rates of £995.
Product Transfer
- The five-year flat rate offers up to 85% LTV with a £995 living commission.
Tomorrow the firm is launching the following:
Residential
- Five-year fixed-rate home loan and re-mortgage up to 85% LTV with a fee of £995, 20 basis points. higher
Product Transfer
- A five-year flat rate deal up to 85% LTV with a £995 accommodation fee, up 20 pips.
The lender says brokers must submit existing bids for these products by 1pm on March 7 “as they won’t be available after that time.”
Benjamin Blyth, director of Houz Mortgages, says: “TSB was unfair in giving such short notice to withdraw mortgage products and raise rates.
“Almost nothing can be done as required in 25 minutes. This shows how some lenders’ decisions are out of touch with the real world of mortgage advice.
“This behavior is not in the spirit of Consumer Duty as we cannot force people to keep recommending us.
Blyth adds: “Even if we could guarantee quick contact with customers to give them such ridiculous deadlines, it would be wrong.
“Coventry Building Society is a champion in this area, promising 48 hours notice before any rate changes. TSB and any other lender with an obligation to the brokerage community should take note of this and implement accordingly.”
Hannah Bashford, director of Model Financial Solutions, said: “It looks like September and October, but we haven’t seen rates come off so quickly in a long time.
“This is incredibly unfair to the customer as they don’t have time to think about their options and make an informed decision, and it’s impossible to give accurate advice to the customer in such an environment, so I hope other vendors don’t follow suit.”
Lifetime Wealth Management Mortgage and Protection Specialist Cathy Eatenton adds: “I got the same email and thought, ‘I’m glad I didn’t recommend TSB to any of my clients this week.’ This is unacceptable and creates an unnecessary level of panic.”
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