14 October 2014

Two thirds of new homeowners splash £2,500 on their first project in their new pad

Over two-thirds (71%) of first-time buyers and homemovers are spending up to £2,500 on their first project in their new home, according to research from TSB.

With TSB's recently launched Council Tax offer paying a year's worth of Council Tax for new mortgage customers, up to £2,500, TSB is helping to ease the financial burden for new homeowners, enabling them to spend money on necessities within the home.

Whether it is new paintwork or wallpaper (33%), new carpets (15%), kitchen renovations (6%), a new central heating system (5%) or new fitted windows (5%), half of those surveyed (49%) considered it essential for this first project to be carried out in their new home. Over a quarter (27%) also felt that it would make the house feel more homely in the short term.

When moving into a new home, over a third (37%) of people stated that they would prioritise any changes to the lounge first, followed by the bedroom (18%), the kitchen (16%) and then the toilet or bathroom (8%).

When it comes to shopping sprees, white goods(19%), carpets (19%), window coverings (14%) and a new sofa (11%) are the four most popular purchases for a new home. New carpets are particularly popular amongst the older generation (27% of 55+), compared with 18 to 24 year olds (only 10%), who prefer to spend their money on white goods (26%.).

TSB's Council Tax offer is available up to a maximum of £2,500 on mortgages for First Time Buyers and Home Movers over 75% and up to 90% loan to value. To qualify for the Council Tax offer, new mortgage customers 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: "TSB is focused on supporting customers with the costs associated with buying a home. Helping with a significant cost, such as Council Tax for the first year, means our customers have the opportunity to spend the money that they have saved on other aspects of homeownership, such as redecoration and furnishings. 

"We know people often have to undertake significant projects in their new home. Being able to help people cover these costs brings TSB's local banking for Britain mantra to life."

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 to '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 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.

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Notes to editors

Research based on a survey for TSB by OnePoll of 2,000 respondents in Great Britain, completed from 19th to 22nd September 2014.

Offer details:

  • 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 for First Time Buyers and Home Movers over 75% and up to 90% loan to value and is subject to current lending criteria and an 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.

For further information about TSB Bank plc, please visit our website  www.tsb.co.uk .