Good news for Britons as TSB launches sweeping range of new mortgage products

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

Mortgage deals have been made convoluted in many circumstances due to the added pressures of the COVID-19 crisis. In many cases, lenders have needed higher deposit amounts, and extensive background information on affordability to ensure people can keep up with payments. But for those looking to take the next step in their homeownership journey, a new range from TSB could be a well-suited solution.

The bank, which is popular with millions of Britons, has today announced a new mortgage product range likely to help many people right across the country.

The range is targeted towards first-time buyers and provides several options to choose from.

However, the important issue to consider is that the range will move customers onto a lower follow-on tracker rate after their fixed term ends.

This, TSB has said, is an industry-first, providing a sought after arrangement Britons have not been able to get elsewhere.

Such an arrangement means the total amount payable during the mortgage term will be reduced, potentially making the loan more manageable. 

In addition, TSB has said first-time buyer applications will now be stressed at a lower rate.

Applications will be moved onto a rate of 5.6 instead of 6.6, which is a direct result of the lower follow-on tracker rate.

Nick Smith, TSB’s Head of Mortgages, commented on the new product range.

Britons face important deadlines as first support measures end [ANALYSIS]
Nationwide: Have you won in the October prize draw? Check now [INSIGHT]
State Pension UK: Rishi Sunak urged to scrap ‘unfair’ Triple Lock [UPDATE]

He 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.”

There are key features of the mortgage range which will be important for budding homeowners to bear in mind.

The range’s interest rates will start from 1.34 and include fixed two-year, five-year and ten-year products, alongside five-year and ten-year fix and flex products.

But following the end of the term, customers can move onto a lower tracker rate of 2.49 percent, rather than the current TSB Homeowner Variable Rate of 3.59 percent.

The lower total amount payable during the mortgage term is likely to have a significant impact for buyers.

For example, a customer who is borrowing £100,000 over 30 years at an initial rate of 3.49 percent would now pay a TAP of £148,830.35.

This would be instead of £162,901.57, a substantial reduction of over £14,000. 

TSB has also included a new five-year fixed stepped down product designed for first-time buyers.

This rate will start from 2.54 percent, depending on a person’s Loan to Value.

It will then reduce four times over five years to ensure Britons see a decrease in their mortgage payments. 

In a similar way, these customers will also then move onto the follow-on tracker rate of 2.59 percent. 

For those looking to enter into a mortgage arrangement, the Money Advice Service always states advice should be taken.

This is because a mortgage is a substantial financial commitment, and tailored help to a person’s individual circumstances can be particularly beneficial. 

Source: Read Full Article