TSB has joined a growing group of lenders offering low deposit mortgages in time-limited “fire sales”.
From 8am today the bank will offer a limited number of 90% loans, having given only a few hours notice of the sale.
The deal is only available on loans of up to £350,000, for houses and bungalows — but not flats — and the offer will end as soon as its allocated funds ran out or the clock reached 5.30pm.
This week Accord, part of the Yorkshire Building Society, issued loans for those with 10% deposits — but only for 48 hours. HSBC has been one of the few banks to offer 10% deposit mortgages, and ran daily offers from 8am, which have now been withdrawn.
The average mortgage rate for a 10% deal is now 3.28%, up from 2.33% at the beginning of the year, based on a five-year, fixed-rate mortgage. By contrast, the average five-year, fixed rate mortgage for borrowers with a 40% deposit is 1.79%