TSB to subsidise stamp duty

The average buyer spends approximately 1,650 on stamp duty and 11% of aspiring homeowners are said to worry about the additional cost.

Ray Boulger, senior technical at John Charcol, said: “Now TSB are beginning to offer some different products it means we have a different lender in the market so that is positive - it is increasing competition.”

He highlighted this as an interesting move from TSB, being the first time they have significantly diverged from Lloyds.

Ian Ramsden, mortgages director, TSB said: ““This offer could save TSB customers up to £2,500 enabling homebuyers across Britain to spend more on what matters most to them when moving house.

“By putting this money back into its customers’ pockets TSB is helping fuel local economies.”

Those who are exempt from paying stamp duty, or whose property price is above 250,000, will also be able to claim £500 cashback.

Boulger added: “I think it could really help people buying a high loan to value.

“If you need a 95% loan to value mortgage having cash back is going to be more valuable than for people who have a high deposit.”