From today, TSB is offering to pay a year's worth of Council Tax for new mortgage customers to help support them with the cost of running their new home.
New research from TSB found that paying for Council Tax is the biggest monthly expenditure for more than half of people (55%), after they've paid their monthly mortgage bill. By contrast, almost one in eight said their second largest monthly payment goes towards their electricity bill (12%), whilst one in ten (10%) said it's their gas bill.
When it comes to new homeowners' financial concerns, paying Council Tax is the third most common worry with a fifth (20%) stating this is top of their list. This was topped by unexpected costs such as the boiler breaking (33%) and unknown running costs such as estimating the amount of new utility bills (32%). By covering the Council Tax bill during the first year, TSB is helping to ease the financial pressure often faced by new homeowners when moving in to a new property.
TSB's Council Tax offer is available to both first-time buyers and homemovers up to a maximum of £2,500 on mortgages over 75% and up to 90% loan to value. Once customers have moved into their new home, they simply need to send a copy of their initial Council Tax bill relating to the current Council Tax year to TSB and they will receive the annual amount detailed on the bill in their bank account within 21 days.
Ian Ramsden, TSB Mortgages Director, says: "There are many costs associated with buying a new home, so by covering the cost of Council Tax in the first year, TSB can help to ease the financial burden for new homeowners. We want to put money back in to people's pockets so they can spend it on other creature comforts for their new abode.
"Helping people take that first step and climb future rungs up the property ladder is a fundamental part of creating thriving local economies. And people thriving all over Britain is what TSB's local banking for Britain is all about."
Appointments with qualified mortgage advisors are available in branch or customers are welcome to apply online or by telephone.
TSB has recently launched a new campaign to encourage people 'Borrow Well' helping them to borrow money in a way that makes the best financial sense for them. This means that all TSB customers receive the right information and product choice so that they can make informed decisions.
TSB also offers assistance for people whose mortgage application has been rejected, helping them understand the reasons behind the decline and assisting them wherever possible.
Notes to editors
Research based on a survey for TSB by OnePoll of 2,000 respondents in Great Britain, completed from 22nd to 26th August 2014.
- To receive the payment, the customer needs to send in a copy of their initial Local Authority Council Tax bill within three months following completion. The bill must detail at least one name that is on the mortgage account and be from the tax year corresponding to the date of completion. The annual charge detailed on the bill will be paid to the customer within 21 working days.
- The annual amount of Council Tax up to £2,500 will be paid by TSB as a one off payment directly to the customer's account from which their mortgage payments are made. It will remain the customer's own responsibility to pay their Local Authority.
- The amount paid will be based on the council tax element of a bill. Additional charges for water, utilities and sewerage, typically included in Scotland, will not be included.
- This offer is available up to mortgages of £1 million on mortgages over 75% and up to 90% loan to value and is subject to current lending criteria and affordability assessment.
- Buy to let, shared equity and shared ownership mortgages are not included in this offer.
- This offer is available from 29th August 2014 and can be withdrawn at any time.
TSB Bank plc is a British bank which provides customers with a range of services and products such as current accounts, savings, credit cards, loans, mortgages and insurance.
With a presence on 631 high streets right across Britain, TSB Bank plc has approximately 8500 staff looking after £22 billion on behalf of its 4.5 million customers. Our purpose is to support safe and sustainable economic growth in the surrounding communities, serving only individuals and local business customers.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk.