Variable Mortgage Rates

Homeowner Variable Rate

The Homeowner Variable Rate (HVR) is currently 8.24%. (Rate applies to existing customers from 1 December 2024).

The Homeowner Variable Rate is relevant to all new TSB mortgages except for buy-to-let mortgages and first time buyer mortgages, and is the rate that will apply when your initial deal period ends.

If you applied for a mortgage before 1 June 2010, your mortgage will move on to the Standard Variable Mortgage Rate.

Buy-to-Let Variable Rate

The Buy-to-Let Variable Rate (BTLVR) is currently 9.09% (rate applies to existing customers from 1 December 2024).

The Buy-to-Let Variable Rate (BTLVR) is relevant to all new TSB buy-to-let mortgages and is the rate that will apply when your initial deal period ends.

If you applied for a buy-to-let mortgage before 1 June 2010, your mortgage will move on to the Standard Variable Mortgage Rate.

Follow-on Tracker Rate

The Follow-on Tracker rate is currently 7.24% (rate applies to existing customers from 1 December 2024).

The Follow-on Tracker Rate tracks the Bank of England base rate and is 2.49% above the base rate. For example, if the base rate changes from 6.0% to 6.5% the Follow-on Tracker Rate will change from 8.49% to 8.99%.

The Follow-on Tracker rate applies to all new first time buyer mortgages applied for between 23 October 2020 and 28 October 2022, or after 7 December 2023.

If you applied for a first time mortgage outside of these dates, your mortgage will move on to the Homeowner Variable rate (HVR).

Standard Variable Mortgage Rate

The Standard Variable Mortgage Rate is currently 6.75%. (Rate applies to existing customers from 1 December 2024).

• Only applies at the natural end of a mortgage deal if you applied for your deal before 1 June 2010*
• Guaranteed to be no more than 2% above the Bank of England base rate**
• It's a variable rate, so your payments can go up and down

If you are currently on a fixed rate or tracker mortgage applied for before 1 June 2010, then when your deal ends your interest rate will switch to the Standard Variable Mortgage Rate, which could be higher or lower than the rate you have been paying and may vary over the remaining term of your mortgage.

If the Standard Variable Mortgage Rate is available to you at the end of your deal, you can choose not to move on to it but to switch to a new deal instead. If you decide to transfer, once that new deal ends you will go on to either the Homeowner Variable Rate or Buy-to-Let Variable Rate depending on the mortgage you take out, and it will not be possible for you to return to the Standard Variable Mortgage Rate in the future.

* The Standard Variable Mortgage Rate only applies at the natural end of a fixed-rate, tracker or other special deal period - not if you come off a deal early. If you applied for a mortgage on or after 1 June 2010, different variable rates will apply.

** If a change in the base rate means that the Standard Variable Mortgage Rate needs to change in order to fulfil the guarantee, then it will be changed within 30 days of the change to the base rate. This guarantee does not apply to the Homeowner Variable Rate or the Buy-to-Let Variable Rate.

Important things to remember

• You'll move on to one of these rates at the end of any mortgage deal you applied for on or after 1 June 2010, unless, when that deal ends, you decide to switch to a new deal instead
• These are variable rates, so your payments can go up and down
• There are no early repayment charges with the above rates, so you are free to repay all or part of your mortgage at any time
• They are only available when you get to the end of a fixed-rate, tracker or other special deal period, not at any other time
• Unlike the Standard Variable Mortgage Rate and the Follow-on Tracker Rate, neither the Homeowner Variable Rate nor the Buy-to-Let Variable Rate are guaranteed to be no more than a specified amount above the Bank of England Base Rate
• When your deal ends your interest rate will move on to either the Homeowner Variable Rate or the Buy-to-Let Variable Rate or the Follow-on Tracker Rate (the Follow-on Tracker Rate is only for first time buyer rate mortgages applied for between 23 October 2020 to 28 October 2022  or after 7 December 2023). These rates could be higher than the rate you have been paying and are likely to vary over the remaining term of your mortgage

How interest is calculated

Interest on all new mortgages is worked out on a daily basis.

It is calculated using the balance outstanding each day and then added to the mortgage at the end of each month.

Daily interest is usually better because each payment you make reduces the balance on which interest is paid from that day, rather than the end of the month or year.

If you already have a mortgage with us and are moving home or applying to borrow more, it may be that, currently, interest on your existing mortgage is calculated annually. If this is the case, we will change it to daily interest when your new mortgage or loan starts so that interest on your whole mortgage will then be calculated daily.

Even if you're not moving or borrowing more, if your interest is calculated annually, you can ask us to calculate it on a daily basis instead.

How to apply

Mortgage calculator

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