TSB will launch a suite of first-time buyer products with rates starting at 4.64% from tomorrow (7 December).
The high street lender says the range includes two-, three-, and five-year fixed-rate loans, as well as a two-year tracker deal.
Following the end of the fixed-rate term, customers will move onto a lower follow-on tracker rate of 2.49% above base rate, currently 7.74%, instead of the current TSB homeowner variable rate of 8.74%.
The bank says all FTB products will result in a lower total amount payable over the term of the mortgage, compared to TSB’s home mover products if the customer remained in the tracker.
This means that borrowers will pay back less as they repay their mortgage, the firm adds.
For example, a customer borrowing £100,000 over 30 years at an initial rate of 4.64% would now pay a total amount payable of £249,628, instead of £272,019.
FTB applications will be stressed at a 1% lower rate than other applications, due to the lower follow-on tracker rate, the lender says.
TSB head of mortgages Deby Herring adds: “At TSB we’re keen to provide support where we can, and our new FTB mortgages will give customers greater flexibility when taking out their first mortgage”.
