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.
