£307,000 TSB Home Mover Mortgage at 3.89% with a 25% Deposit from Sale Proceeds in Sheffield

Heron Financial arranged a £307,000 mortgage with TSB Bank at an initial fixed rate of 3.89% on a 2-year fix for joint home movers buying a £410,000 semi-detached home in Sheffield. The clients put down a £102,000 deposit funded entirely from the sale of their previous property, placing the loan at 75% LTV. The case completed in December 2025.

The clients

The clients were a British couple in PAYE employment, with one applicant working as an Engineer. They were home movers, selling their previous property and using the proceeds to fund a 25% deposit on a £410,000 semi-detached home in Sheffield.

The case at a glance

• Buyers: Joint home movers, British nationals, employed (PAYE)
• Occupations: Engineer (and second applicant)
• Property type: Semi-detached house
• Location: Sheffield
• Purchase price: £410,000
• Deposit: £102,000 from the sale of their previous property (~25%)
• Loan amount: £307,000
• LTV: 75%
• Lender: TSB Bank
• Product: 2-Year Fixed Rate 
• Initial fixed rate: 3.89%
• Repayment method: Capital and interest

Why this case mattered

Home movers using sale proceeds for the deposit sit in a strong negotiating position with lenders. With clear evidence of the deposit source through the completion statement on the previous property sale, the clean income picture from two PAYE earners, and the comfortable 75% LTV positioning, the case fundamentals were strong. That moved the conversation from “can we get approved?” to “which lender prices this best?”, a different and more rewarding conversation, but one where lender choice still matters.

At 75% LTV, the case sat in the band where most major UK lenders compete actively. Rates step up slightly from the cheapest sub-60% LTV pricing, but the 60–75% bracket remains competitive. TSB Bank came through with a 3.89% rate on a 2-year fix, sitting at the lower end of mainstream pricing for the LTV tier at the time of application.

The 2-year fixed term reflects the clients’ preference for short-term payment certainty with an early review point built in. A 5-year fix would have given longer payment certainty but reduced the option to revisit the mortgage if the rate environment shifts. For home movers settling into a new property with plans that may evolve over the next two or three years, the shorter term often suits.

How Heron Financial approached the recommendation

The Heron adviser worked through affordability against the clients’ recorded household income, confirmed the deposit position with evidence from the previous property sale, and matched the case to a lender pricing competitively at 75% LTV for clean joint applications. With the clients prioritising short-term certainty, Heron Financial recommended TSB Bank on a 2-year fixed rate at 3.89%.

The outcome

The case completed in December 2025, just before year-end. The clients moved into their new Sheffield home with a fixed monthly payment locked in for the next two years and a clear point in the calendar to revisit their mortgage with Heron Financial ahead of the product end.

What this means for buyers in a similar position

For home movers using sale proceeds to fund a 20%–30% deposit, the mortgage market is competitive. Most major UK lenders compete actively in the 70%–75% LTV bracket, and rate differences between lenders can matter more than they do at higher LTV tiers, where pricing is broader. A few practical points worth knowing.

Sale proceeds need clear evidence. Lenders require the completion statement from the previous property sale as part of the deposit evidence pack. Where the sale and purchase chain are running close together, timing the evidence can become a practical question for the broker and solicitors to manage.

75% LTV is competitive but not the cheapest tier. The cheapest mainstream pricing begins at or below 60% LTV. The 60%–75% bracket sits one tier up, where rates step up slightly but remain competitive across most major lenders. If a borrower can stretch the deposit to drop into sub-60%, the rate saving across a fixed term can be meaningful.

TSB is regularly considered for home mover cases. TSB is one of the established UK mainstream lenders with a broad residential product range. Heron Financial assesses each case against the wider lender market on every application.

A 2-year fix suits home movers with evolving plans. Short-term payment certainty plus an early review point is often the right balance for households settling into a new home where circumstances may change over the next few years.