TSB has rolled out a new mortgage range aimed at first-time buyers, responding to challenges highlighted in its recent research.
The study shows that despite a stagnation in property prices, 35% of non-homeowners do not see themselves buying a home in the future, and less than a third (29%) plan to do so within the next five years.
High property prices, difficulty in saving for a deposit, and earning enough for mortgage eligibility are significant obstacles, especially with rental prices increasing by 6.1% in the year to October 2023.
Renters are also facing financial stress, with 76% experiencing financial anxiety in the last six months, in contrast to 46% of outright homeowners.
The new TSB mortgage product for first-time buyers offers a lower follow-on tracker rate post the initial fixed term, aiming to reduce the total amount payable over the mortgage’s term.
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.”
