07 May 2021

TSB Helps More First-Time Buyers Get Onto The Property Ladder Than Ever Before

  • In March 2021 TSB saw a 60% YOY uplift in first-time buyer completion numbers - despite housing market being temporarily shut last year
  • This follows the launch of TSB’s new suite of first-time buyer products and the reintroduction of its 95% LTV mortgages

New figures released today by TSB reveal that between March 2020 and March 2021, TSB provided 12,000 mortgages for first-time buyers, a 60% increase on the previous 12-month period, despite the housing market being effectively shut for much of the first half of 2020 due to the pandemic.

In the final quarter of 2020, driven by the Government’s decision to waive stamp duty on house purchases, TSB saw a 102% year on year uplift in mortgage applications among first-time buyers, pointing towards a ferocious demand for properties.

TSB data reveals that in the last quarter of 2020, the average application purchase price for first-time buyers increased by 9% year on year to £223,146, demonstrating the increase in demand as a result of lockdown with more wanting to move and own their first home coupled with Government support.

The average age of first-time buyers remains at 30 years old.

Nick Smith, Head of Mortgages at TSB said: “The market is showing no signs of slowing down, and by reintroducing our 95% LTV mortgages, we hope to help those with smaller deposits to buy a house, particularly first-time buyers. Our Fix and Flex mortgages are also an effective way to help those new to owning a property manage their repayments in the long-run without the long-term tie-in.”

Tips for First-time Buyers

  • Save, save, save
    • When thinking about your new home, start saving as soon as possible. The launch of 95% loan to value mortgages will be really helpful for those with a smaller deposit. But don’t forget that you will need to think about solicitor and moving costs too.
    • Having the right tools can also help with this. Do your research on the best current accounts and savings accounts available and choose one which suits your needs.
  • Get yourself mortgage ready
    • Your credit score is really important when applying for mortgage, it determines the rate you are offered and whether you qualify for a mortgage. There are a number free credit check services you can use such as Experian or ClearScore.
    • Remember to strengthen your credit score; build your credit history but pay your bills on time and keep balances as low as possible. Get on the electoral register as soon as possible to prove where you live.
    • Showing a “surplus” in your income each month – i.e. saving a regular, consistent amount - will help to demonstrate that you can afford a mortgage whilst building up your deposit at the same time.
  • Research and advice
    • Understanding what you can afford will help you on your search for your first home. Speak to a mortgage adviser to get advice. Be clear on your salary and any credit you owe (e.g. a personal loan, credit card bills). They can also advise whether you’d be eligible for Government schemes like Help to Buy and the Stamp Duty Holiday.
    • Once you know how much you can afford, you can start researching properties and areas that you can live.
  • Search “smart”
    • Use online tools to figure out what you can afford in your chosen locations.
    • Think ahead – you’re only a first-time buyer once and moving house is expensive – in most instances you should only buy somewhere that you’re confident will meet your needs for at least 5 years.
    • Think carefully about location – what you save on the house-price could cost you more on commuting costs, or the need to buy a car, if you over-compromise.
    • Registering with estate agencies can help your search, potentially highlighting new properties coming on the market before they’re listed online. This will also give you a reality-check of what is available and in your budget.
  • Be patient
    • Remember, buying your dream home will take time, consider all your requirements first before jumping in.

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