You are here: Home - Mortgages - First Time Buyer - News -

TSB launches first-time buyer range with lower stress rate

Written by: Owain Thomas
TSB has launched a range of mortgages for first-time buyers with deals available up to 85% loan to value (LTV).

The range has a follow-on rate of 2.49% above the Bank of England Base Rate, lower than the lender’s current homemover variable rate of 3.59%.

As a result of the lower follow-on tracker rate, first-time buyer applications will be stressed at a lower rate of 5.6% instead of 6.6%.

“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.

The range includes just one two-year fix at up to 60% LTV with a rate of 1.39% and £999 fee.

It includes just one two-year fix at up to 60% LTV with a rate of 1.39% and £999 fee.

However, a full range of five-year and ten-year fixes are available up to 85% LTV.

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%.

The step down fee-free version starts in years one at 3.29%, before dropping to 3.19%, 3.09% 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% LTV is at 1.39% with £995 fee, while five-year and ten-year fixes are available up to 85% 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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week