TSB Mortgages Review (2026): Criteria, the Santander Takeover & How It Compares
TSB is a solid mid-market high-street lender — 95% mortgages, up to 5.5× income for higher earners, and lower fees than most big banks. But it’s now owned by Santander, with the TSB brand set to disappear. Here’s what TSB offers today, what the takeover means if you have (or want) a TSB mortgage, and where it stands against rivals.
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Quick answer
TSB is a mainstream high-street lender offering competitive, mid-market mortgages: up to 95% loan-to-value for first-time buyers and home movers (including new builds), income multiples of up to 5.5× for people earning £75,000 or more (capped at 4.49× above 90% LTV), buy-to-let up to 80% LTV, terms up to 40 years, and product fees that top out around £995 — lower than several big rivals. It counts 100% of basic and self-employed income but only 60% of overtime and bonuses, stress-tests affordability at 9.5%, and generally wants a clean credit history. The single most important thing to know in 2026 is that TSB is now owned by Santander: the £2.65 billion acquisition completed on 30 April 2026. For now TSB continues to operate as a separate bank under its own name and banking licence, so existing TSB mortgages are unchanged and new TSB products remain available. But full integration is expected in the first half of 2027, after which the TSB brand is set to be phased out and customers folded into Santander UK. If you already have a TSB mortgage, nothing changes to your contract, rate or payments; when integration happens you’ll be told in advance. If you’re choosing a new lender, TSB’s current products are still worth comparing — but it’s sensible to weigh a lender that’s mid-takeover against settled rivals. nextmove is not affiliated with TSB or Santander. General information, not advice, as of September 2026.
In this guide
The Santander takeover: what it means for you
Completed May 2026 — TSB separate for now, integration due 2027
On 30 April 2026, Santander UK completed its £2.65 billion cash acquisition of TSB from its former Spanish owner Sabadell, after approval from the Prudential Regulation Authority and the European Central Bank. Around five million TSB customers and £36 billion of lending — mostly mortgages — moved under Santander’s ownership, making the combined group the UK’s third-largest bank by current accounts and fourth-largest for mortgages.
What’s changed so far: nothing you’d notice. TSB is a wholly owned subsidiary of Santander UK, but it continues to operate as a separate bank, under its own brand and its own banking licence. Existing TSB mortgages, rates, terms and direct debits are unchanged. TSB and Santander customers can’t yet use each other’s branches. Because the two banks are still separately licensed, savers with both get separate FSCS protection.
What’s coming. Santander intends to fully integrate TSB via a formal banking transfer scheme in the first half of 2027, subject to court and regulatory approval. Santander has indicated the 215-year-old TSB brand will then be phased out, with the combined business operating as Santander UK — as it did with Abbey, Alliance & Leicester and Bradford & Bingley. Some branch rationalisation is expected over time, though none tied to the merger has been announced.
If you have a TSB mortgage: your contract stands. Your fixed rate, term and payments continue exactly as agreed; a change of owner doesn’t alter a mortgage contract. When integration happens, your mortgage will transfer to Santander UK and you’ll be written to in advance. It’s worth checking when your current deal ends, because that — not the takeover — is the moment your options change. If you’re considering a new TSB mortgage: the products are real and available now, and the criteria below apply — but you’re choosing a lender whose brand and systems will change within your fixed term, which some borrowers are comfortable with and others aren’t.
“Lloyds TSB” — clearing up the confusion
A huge number of people still search for “Lloyds TSB mortgages”, so it’s worth being clear: Lloyds TSB no longer exists, and TSB has had nothing to do with Lloyds since 2013. TSB was carved out of Lloyds Banking Group in 2013 (a condition of Lloyds’ state bailout), floated in 2014, was bought by Spain’s Sabadell in 2015, and is now — since May 2026 — owned by Santander UK. So if you had a “Lloyds TSB” mortgage from before 2013, it will have ended up with either Lloyds Bank or TSB depending on how the split allocated it; the two are entirely separate lenders today with different criteria and rates. If you’re looking for Lloyds, see our Lloyds Bank mortgages review. If you’re looking for TSB’s new owner, see our Santander mortgages review. This page covers TSB as it stands today.
Residential criteria
For standard residential borrowing, TSB is competitive with the other high-street banks:
- Loan-to-value: up to 95% for first-time buyers and home movers, and — unusually — up to 95% on new-build properties too, where many lenders cap flats at 85%. Remortgages go to 90% LTV if you’re not increasing the loan, or 85% if you are.
- Income multiples: a standard range of roughly 4.25–4.75×, rising to 5.5× for borrowers earning £75,000 or more on loans below 85% LTV (the threshold was lowered from £100,000 in 2025). Crucially, at 90% LTV and above the multiple is capped at 4.49× regardless of income.
- Term: up to 40 years, which helps first-time buyers stretch affordability.
- Stress test: TSB applies a 9.5% stress rate to affordability, checking you could cope if rates rose sharply.
- Credit: you’ll generally need a clean credit history — TSB isn’t a lender for adverse credit.
- Overpayments: most products allow 10% of the balance per year without an early repayment charge.
That LTV-and-multiple interaction is the most TSB-specific thing to understand, and it can be worth a lot. An £80,000 earner with a 5% deposit is capped at 4.49× — about £359,200. The same earner with a 15% deposit (85% LTV) could access 5.5× — about £440,000. That’s roughly £80,000 more borrowing unlocked purely by a bigger deposit. Our guide to how much you can borrow covers the general maths, and loan-to-value explains why deposit size matters so much.
How TSB assesses your income
TSB’s treatment of different income types is fairly typical of the high street, with one notable point for people on variable pay:
- Basic salary: 100% counted.
- Overtime, bonus and commission: only 60% counted. So a £40,000 basic with £10,000 of bonus is assessed as £46,000, not £50,000 — worth knowing if a big chunk of your pay is variable, as some rivals count more. See our guide to bonus and commission income.
- Self-employed: 100% of income counted, but TSB wants two years’ accounts — it’s not a one-year-accounts lender. Sole traders and limited company directors are both accepted; see self-employed mortgages.
- Contractors: accepted with 12 months’ contracting history (no gaps over six weeks) and at least three months left on the current contract, or a new one lined up. See contractor mortgages.
- Other situations: TSB lends to people on maternity leave and to partners of PLCs and LLPs, and has a bespoke team for larger loans of £750,000-plus arranged via brokers.
Background commitments — credit cards, car finance, student loans, childcare and school fees, and any background buy-to-lets — all reduce the maximum loan, as with any lender.
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Buy-to-let with TSB
TSB offers buy-to-let mortgages to new and existing landlords at up to 80% loan-to-value — a slightly more generous ceiling than the 75% many lenders apply, meaning a 20% deposit rather than 25%. On a £250,000 rental property that’s £50,000 down instead of £62,500. To qualify you must be at least 25 and earn at least £25,000 a year in personal income, and TSB assesses the rent against its interest cover ratio in the usual way. Limited company landlords can apply, providing accounts, director details and rental projections. TSB isn’t a specialist landlord lender — for HMOs, holiday lets or large portfolios you’d look elsewhere — but for a straightforward single buy-to-let it’s a credible high-street option. Our guides to buy-to-let mortgages and the buy-to-let deposit cover the wider picture. Note that most buy-to-let lending is not regulated by the FCA.
Fees, incentives & who it suits
Where TSB genuinely scores against bigger rivals is on cost and incentives. Its product fees top out around £995, compared with up to £1,499 at Halifax and Leeds Building Society, and most TSB products include a free valuation. On remortgages you can usually choose between cashback or free legal fees, and first-time buyers often get cashback on completion. Its rates are broadly competitive with the high street — generally not the very cheapest, but not expensive — so on smaller loans especially, TSB’s lower fee can make its total cost over a fixed period cheaper than a rival with a keener headline rate and a bigger fee. On service, TSB scored 67% in a recent Which? customer satisfaction survey (23rd place), with Santander at 71% — middling rather than outstanding.
TSB tends to suit first-time buyers with a small deposit (95% LTV, long terms, cashback), higher earners with a 15%-plus deposit who can unlock 5.5×, remortgagers who value the fee and incentive package, and straightforward single buy-to-let landlords. It’s less suited to anyone with adverse credit, self-employed borrowers with under two years’ accounts, people whose income is heavily bonus-based (60% counted), and specialist landlords. And in 2026 there’s the takeover factor: TSB’s products are perfectly good today, but its brand and systems will change during a typical fixed term, so it’s worth comparing against settled lenders like Nationwide or Halifax before committing. A broker can run that comparison on total cost, not just the rate.
The bottom line
TSB is a solid mid-market high-street lender: 95% mortgages (including on new builds), up to 5.5× income for £75,000-plus earners with a 15% deposit, buy-to-let to 80% LTV, terms to 40 years, and product fees capped around £995 with free valuations and cashback — a genuinely competitive package, particularly for first-time buyers and remortgagers. Its limits are a clean-credit requirement, two years’ accounts for the self-employed, only 60% of bonus counted, and a 4.49× cap at high LTV. The defining fact of 2026 is that TSB is now owned by Santander: separate for now, integrating in 2027, brand to be retired. Existing TSB mortgages are untouched, and new ones are still available — but if you’re choosing a lender, compare TSB’s current deals against settled rivals with your eyes open to the change ahead. That side-by-side comparison on total cost is exactly what a broker does.
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TSB mortgages: FAQs
Is TSB still doing mortgages after the Santander takeover?
Yes. Santander UK completed its acquisition of TSB on 30 April 2026, but TSB continues to operate as a separate bank under its own brand and banking licence for now, and its mortgage products remain available to new and existing customers. Nothing has changed to existing TSB mortgages — rates, terms and payments continue exactly as agreed, because a change of ownership doesn’t alter a mortgage contract. Full integration into Santander UK is expected in the first half of 2027, subject to court and regulatory approval, after which the TSB brand is set to be phased out and customers folded into Santander. TSB has said it will write to customers in advance of any change. So in 2026 you can still take out a TSB mortgage; just be aware the lender’s brand and systems are likely to change within a typical fixed-rate term.
What happens to my TSB mortgage now Santander owns TSB?
Nothing changes to your mortgage itself. Your fixed rate, term, monthly payment and the terms of your contract all stand — a change of the lender’s owner doesn’t alter the agreement you signed. For now, TSB remains a separate bank, so you continue to deal with TSB, use TSB’s app and branches, and make payments as usual; you can’t yet use Santander branches. When Santander integrates TSB (expected in the first half of 2027), your mortgage will transfer to Santander UK and you’ll be notified in advance, but the contractual terms carry across. The moment your options genuinely change is when your current deal ends — at that point you’ll be offered new products, likely under the Santander name, and it’s worth comparing the whole market rather than simply accepting the in-house switch. Any savings you hold with TSB and Santander are separately FSCS-protected while the banks remain separately licensed.
How much can I borrow with TSB?
TSB’s standard income multiples are roughly 4.25 to 4.75 times income, rising to a maximum of 5.5 times for borrowers earning £75,000 or more on loans below 85% loan-to-value. The important catch is that above 90% LTV, the multiple is capped at 4.49 times regardless of what you earn. This means deposit size directly affects how much TSB will lend: an £80,000 earner with a 5% deposit is capped at around £359,200, but with a 15% deposit could access up to around £440,000 — roughly £80,000 more. TSB counts 100% of basic salary and self-employed income but only 60% of overtime, bonus and commission, applies a 9.5% stress rate, and reduces the maximum for background commitments such as credit cards, car finance, student loans and childcare costs. Terms of up to 40 years are available. A broker can confirm your figure and compare it with what other lenders would offer.
Does TSB lend to self-employed borrowers?
Yes, but with a firm two-years’-accounts requirement. TSB counts 100% of self-employed income for affordability, and accepts sole traders and limited company directors, but it wants at least two years of accounts or SA302 tax calculations — it is not a lender that will consider one year’s trading history, so newly self-employed borrowers will need to look at specialist lenders. TSB also accepts contractors, provided they have 12 months of contracting history with no employment gaps longer than six weeks, and at least three months remaining on their current contract (or a new contract lined up). If you’re self-employed with two-plus years of clean, well-documented accounts, TSB is a reasonable high-street option; if your trading history is shorter or your income is complex, a broker can point you to lenders whose criteria fit better.
Is TSB the same as Lloyds TSB?
No — and the confusion is understandable, because “Lloyds TSB” was a familiar high-street name for many years. TSB was separated from Lloyds Banking Group in 2013 as a condition of Lloyds’ government bailout, floated on the stock market in 2014, bought by Spain’s Sabadell in 2015, and has been owned by Santander UK since May 2026. Lloyds Bank and TSB are therefore entirely separate lenders today, with different criteria, rates and products. If you held a Lloyds TSB mortgage from before 2013, it will have ended up with either Lloyds Bank or TSB depending on how the split allocated it, and you’d deal with whichever now services it. If you’re looking for Lloyds, its mortgages are reviewed separately; this page covers TSB as it stands in 2026, now as part of the Santander group.
Is TSB a good mortgage lender compared with the big banks?
TSB is a solid mid-market choice rather than a market leader. Its strengths are 95% loan-to-value lending (including on new builds), up to 5.5 times income for higher earners with a decent deposit, buy-to-let to 80% LTV, terms up to 40 years, and a competitive cost package — product fees capped around £995 (lower than Halifax or Leeds Building Society), free valuations, and cashback or free legals on remortgages. Its rates are broadly in line with the high street rather than the cheapest available. Its weaknesses are a clean-credit requirement, two years’ accounts for the self-employed, counting only 60% of bonus income, and a 4.49 times cap at high LTV. Customer satisfaction is middling (67% in a recent Which? survey). And in 2026, TSB is mid-takeover by Santander, with its brand due to be retired in 2027 — so it’s worth comparing its current deals against settled rivals such as Nationwide or Halifax on total cost before committing.
- Santander UK — completion of TSB acquisition (May 2026)
- TSB — mortgage eligibility criteria
- FCA — information for consumers
- MoneyHelper — free, government-backed money guidance
Important information
nextmove is an introducer, not a lender or mortgage adviser. We are not affiliated with, and this page is not authorised or produced by, TSB Bank or Santander UK. This article is a general, factual overview for information only and does not constitute financial advice or an endorsement of TSB, Santander or any other lender. Lending criteria, income multiples, loan-to-value limits, fees, rates and product availability are correct to the best of our knowledge as of September 2026 but change frequently — and TSB’s integration into Santander UK, expected in 2027, may change its products, brand and criteria; always check current details with the lender or a broker. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. We introduce you to FCA-regulated, whole-of-market mortgage brokers who can compare TSB against the wider market and advise, and we may receive a fee or commission for doing so.
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