TSB responds to persistent hurdles faced by aspiring homeowners with the launch of a specialized mortgage range for first-time buyers (FTBs). Despite a plateau in property prices, TSB's research reveals that over a third (35%) of non-homeowners surveyed don't anticipate purchasing a home in the future, and less than a third (29%) expect to do so within the next five years.
Revolutionizing real estate: Mortgage transformation, new business models and home ownership ecosystems
While 45% of renters point to property prices as a barrier, challenges like saving for a deposit (33%) and insufficient income to qualify for a mortgage (33%) are also significant obstacles. This comes amid a 6.1% rise in rental prices for private tenants in the 12 months to October 2023, according to ONS data. Economic uncertainty is associated with renting, with 76% of private renters experiencing financial anxiety in the previous six months, compared to 46% of outright homeowners.
In response, TSB's first-time buyer mortgages offer an automatic transition to a follow-on tracker rate, lower than the current TSB Homeowner Variable Rate after the fixed period concludes, reducing the total amount payable during the mortgage term. Deby Herring, Head of Mortgages at TSB, notes that while stabilized prices benefit first-time buyers, other factors hinder their progress. The new mortgage range aims to provide flexibility and support for customers taking their initial steps into homeownership.
