TSB is to pay the first annual council tax bill of new mortgage customers, to help people meet hidden costs of repairs to their home, mortgages director Ian Ramsden has said.
Mr Ramsden said that too many entrants to the housing market had to spend at least £2,500 on essential refurbishment and decoration, so the lender would pay up to this amount from the first yearly council tax bill to help people cope with the costs of moving.
He said: “We are 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 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.”
TSB said its council tax offer was available up to a maximum of £2,500 on mortgages for first-time buyers and home movers of more than 75 per cent and up to 90 per cent loan-to-value.
To qualify, new mortgage customers need to send a copy of their initial council tax bill to TSB, and they will receive the annual amount detailed on the bill in their bank account within 21 days.
The move comes following a survey carried out by TSB into the most common expenditures when people move.
| Key Figures |
33% spent on new carpets 15% had to renovate the kitchen 37% prioritised changes to the living room 20% of home movers had to shell out on white goods Source: TSB |
Adviser view:
Mike Pendergast, an IFA with Zen Financial Services in Crewe, said: “This is a variation on a cashback theme, though obviously the amount TSB is refunding is a lot more than a typical cashback.
“The new lenders’ rates are not too bad, although obviously borrowers should shop around because £2,500 saved might be better saved by taking out a cheaper mortgage elsewhere.”
