First-time homebuyers with small deposits are being frozen out of the market after a major lender stopped offering them mortgages.
TSB, owned by Spanish group Sabadell, told mortgage brokers it would stop lending to borrowers in new-build homes with 10% deposits, who are almost exclusively first-time buyers, “while we watch how the market develops”.
The move reflects growing concern about predictions that house prices will fall by 10% by the end of next year, meaning borrowers with large loans could be left in negative equity.
