TSB cuts mortgage rates for first-time buyers

• Over a third (34%) of millennials say that the coronavirus pandemic has meant that they are less likely to ever own their own home
• TSB responds by reducing mortgage rates for first time buyers

Millennials are feeling more hesitant to take the plunge and buy their first homes due to the impacts of the coronavirus pandemic, according to new research from TSB*. Over a quarter (27%) of millennials have found that Covid-19 has had a negative impact on their overall financial wellbeing.

TSB’s research found that a third (32%) of millennial renters – those aged between 25-34 – have postponed their plans to buy their own homes, with the same proportion (34%) saying that the Covid-19 pandemic has made it less likely that they will ever have the opportunity to do so.

Meanwhile, a third of millennial homeowners said that they are now less likely to move to a new property within the next three years, which may lead to delays in ‘second steppers’ making their next moves up the property ladder.

TSB was one of the first lenders to support first-time buyers by returning to loans of 95% LTV. Today, in order to support first time buyers achieve the goal of buying their dream home, TSB has reduced interest rates on some of its 2 year fixed mortgage for first-time buyers by 0.25% meaning that customers with a 10% deposit will be able to get a mortgage rate of 3.39%.

Ian Ramsden Director of Borrowing at TSB, said:

“Our research shows the concerns that the millennial generation has about getting on to the property ladder. The reductions that we have announced today will help some of them take that first step.”