TSB has launched a new mortgage range for first-time buyers, with a maximum LTV of 85% and a lower follow-on tracker rate.
Rates start from 1.34% and the range includes two, five and ten-year fixed rates, as well as five and ten-year Fix and Flex products.
The range also includes a new five-year fixed stepped down product just for first-time buyers. Stepped down rates will start from 2.54% (depending on LTV) and will reduce four times over five years so the customer will see a decrease in their mortgage payments.
Following the end of the fixed term, borrowers will move onto a lower follow-on tracker rate of 2.49% above base rate – currently 2.59% – instead of the current TSB variable rate of 3.59%.
As a result, first-time buyer applications will be stressed at a lower rate of 5.6% instead of 6.6% as a result of the lower follow-on tracker rate.
Nick Smith, TSB’s head of mortgages, 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.”
Original Article from Financial Reporter 23/10/20