TSB latest bank to confirm mortgage deferrals

Jake Carter

March 10, 2020

TSB is the latest bank to confirm it will defer mortgage repayments due to the coronavirus.

According to the lender, affected customers will be able to apply for a repayment holiday for up to two months.

For new customers joining TSB, mortgage advisers and brokers will work with customers and understand their individual position, it added.

Looking to savings customers, individuals will be able to waive early closure fees on fixed rate ISA products.

The bank will also allow fixed bond customers to relinquish their policies in order to gain early access to their money.

For credit card customers, those affected can request emergency credit limit increase, and current account customers can apply for an increased cash withdrawal limit for up to £500.

Turning to personal loan customers, the bank says that all its personal loan products have repayment holidays available as standard for any customers who may need short-term relief on their outgoings

Furthermore, affected business banking customers should contact TSB as it accesses them on an individual basis, the lender concludes.

Looking at the topic of suspending mortgage repayments as a whole, Ray Boulger, senior mortgage technical, John Charcol said: “Suspending mortgage payments has massive implications for lenders as well as mortgage borrowers.

“The devil will be in the detail, but help for those who need it should be balanced with the fact that borrowers who can afford to maintain mortgage payments will be annoyed if they are forced to incur additional interest costs.
“A more proportionate response, and a way of mitigating the problem rather than escalating it, would be to offer borrowers the ability to suspend mortgage payments.”

Sign up to our daily email