TSB has launched a first-time buyer range which will allow borrowers to move automatically onto a follow-on tracker rate that is lower than the lender’s current homeowner variable rate after the fixed period ends.
The lender said that this means that the total amount payable during the mortgage term will be reduced.
Rates in the range begin from 4.64 per cent to include two, three and five-year fixed rates along with a two-year tracker products. A £995 fee applies to some products.
Research from the lender, which surveyed 2,187 adults with 820 rent or live in rent-free accommodation, showed that over a third who were not homeowners said that they do not expect to buy a home at any point in the future.
Only 29 per cent said they expected to become homeowners within the next five years.
Nearly half cited property prices as an obstacle, a third pointed to saving enough for a deposit and a further third pointed to not earning enough to qualify for a mortgage.
Deby Herring, head of mortgages at TSB, said: “Whilst the levelling out of prices might be good for first-time buyers, it isn’t just the cost of housing holding them back. There is a range of other factors making it hard for them to take their first step.
“At TSB we’re keen to provide support where we can, and our new first-time buyer mortgages will give customers greater flexibility when taking out their first mortgage”.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
