TSB launches first-time buyer mortgage range
TSB has launched a range of mortgages for first-time buyers with deals available up to 85 per cent of the property’s value.
The range has a follow-on rate of 2.49 per cent above the Bank of England Base Rate, lower than the lender’s current homemover variable rate of 3.59 per cent.
As a result of the lower follow-on tracker rate, first-time buyer applications will be assessment using a lower stress-test rate of 5.6 per cent instead of 6.6 per cent.
“This will help more first-time buyers to be able to buy the home they want, while ensuring doing so remains affordable for them over the full life of their mortgage,” TSB said.
What’s on offer?
The range includes just one two-year fix at up to 60 per cent of the property’s value with a rate of 1.39 per cent and £999 fee.
It includes just one two-year fix at up to 60 per cent of the property’s value with a rate of 1.39 per cent and £999 fee.
However, a full range of five-year and ten-year fixes are available up to 85 per cent loan to value.
This includes five-year fee-free products with stepped down rates which progressively reduce during the course of the fixed-term.
A standard five-year fix with £995 fee has a rate of 2.99 per cent.
The step down fee-free version starts in years one at 3.29 per cent, before dropping to 3.19 per cent, 3.09 per cent and then 2.94 for years four and five.
TSB has also updated its house purchase range alongside the move.
The sole two-year fix available at up to 60 per cent loan to value (LTV) is at 1.39 per cent with £995 fee, while five-year and ten-year fixes are available up to 85 per cent LTV.
TSB head of mortgages Nick Smith said: “We know that buying your first home can be difficult and we want to do more to help first-time buyers get on the property ladder.
“That’s why we’re introducing this new suite of mortgage products giving customers money confidence to search for their first home.”