It also introduces new Shared Ownership products and appoints new national new build manager
High street lender TSB has increased the loan-to-value (LTV) ratio on new build house purchases to 95%, allowing buyers to secure a home with just a 5% deposit.
The new products, featuring a two-year fixed rate at 5.69% and a five-year fixed rate at 5.39%, are available from today, February 21.
The bank has also launched two Shared Ownership options at 95% LTV. Rates start at 5.49% for a five-year fixed product with no fees and £500 cashback.
The latest product rollout follows TSB’s recent loan-to-income (LTI) enhancements, which enable new build buyers earning over £75,000 to borrow up to 5.5 times their income, provided they have a 10% deposit.
Under the revised terms, a first-time buyer couple earning £80,000 could borrow up to £359,200 with a 5% deposit. Monthly repayments on a two-year fixed rate at 5.69% would average £2,246.74. With the enhanced LTI allowance, the same couple could borrow up to £440,000 with a 10% deposit. Monthly repayments on a two-year fixed rate at 5.29% would average £2,647.08.
“We know buying a first home is a major milestone, but for many, affordability and saving for a large deposit can be a significant barrier,” said Beverley Bradford, head of mortgage distribution at TSB. “These changes will help more first-time buyers get on the property ladder while supporting the construction of greener new homes.”
In addition to product changes, TSB has appointed Paul Thornton as its new national new build manager. In this newly created role, Thornton will oversee the bank’s new build operations and strengthen relationships with housebuilders and mortgage intermediaries. Thornton has been with TSB for 11 years, most recently serving as national account manager in its intermediary mortgage division.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
