A new mortgage range has been launched to help first-time buyers.
Renters looking to buy their first home face a range of challenges, despite a dip in house prices, according to TSB.
The lender conducted research that showed over a third (35%) of those who aren’t homeowners don’t expect to buy a home at any point in the future.
And less than a third (29%) expect to become homeowners within the next five years.
Barriers to buying
Property prices are the biggest obstacle to buying a home, cited by 45 per cent of renters.
This was followed by the challenge of saving a deposit (33 per cent) and not earning enough to qualify for the mortgage required (33 per cent).
Rental prices are also increasing, at a significant rate. Data from the Office for National Statistics shows a 6.1 per cent rise for private tenants in the 12 months to October 2023.
Unsurprisingly, renting is also linked to economic uncertainty. Over three-quarters (76 per cent) of private renters said they’d experienced moments of anxiety or worry related to their finances in the previous six months.
This was significantly lower for people who own their home outright, at just 46 per cent.
New first-time buyer mortgages
TSB has launched a new mortgage range specifically for first-time buyers.
The mortgages enable first-time buyers to move automatically onto a follow-on tracker rate that is lower than the current TSB Homeowner Variable Rate after their fixed period ends.
The lender claimed that this means the total amount payable (TAP) during the mortgage term will be reduced.
Deby Herring, head of mortgages at TSB, said: “Whilst the levelling out of prices might be good for first-time buyers, it isn’t just the cost of housing holding them back. There is a range of other factors making it hard for them to take their first step.
“At TSB we’re keen to provide support where we can, and our new first-time buyer mortgages will give customers greater flexibility when taking out their first mortgage.”