New first-time homebuyer products launched by TSB
November 2, 2020 by Brendan O'Neill
Lenders
TSB is debuting a brand new range of mortgage products that are specifically targeted at people looking to buy their first homes, with these loans offering 85% maximum loan to value (LTV).
Rates for the products within this new range are set to begin at 1.34%, and it will offer first-time homebuyers a choice of ten-year, five-year and two-year fixed rate mortgage deals. Furthermore, in addition to these standard fixed rate deals, the newly announced TSB range will also be including Fix and Flex loans, with both ten-year and five-year versions of these deals being available.
Other options that TSB will be offering those buying their first home include a fixed stepped down mortgage loan designed solely for that section of the buying market. This will be a five-year fixed rate product, with rates determined based on the LTV, beginning at 2.54%. An advantage of these loans is that the rates go down across a five-year period, so borrowers enjoy a steady reduction in their repayments.
After this five-year period ends, the borrower is moved to a lower 2.49% rate, with the current base rate being set at 2.59%. Speaking to Financial Reporter, the Head of Mortgages at TSB, 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.”
As more people take CeMAP courses to become mortgage advisors, this move to open up the housing market to more people is welcome.
Written by
Brendan O'Neill
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