TSB launches first-time buyer range with lower stress rate
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.”