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TSB’s Council Tax offer set to increase customers’ disposable income by 8.4%

4th November 2014 Print

With TSB paying a year’s worth of Council Tax for new mortgage customers, the average customer stands to receive an additional £27.84 of disposable income per week, an increase of 8.4% back in their pocket.

Anyone looking to take advantage of the deal needs to act quickly though, as the last date for applications is Thursday 6November.

In England, Wales and Scotland, the average Council Tax Band D charging area costs £1,452 with the average GDHI (Gross disposable household income) standing at £16,791.  As TSB’s Council Tax offer pays up to a maximum of £2,500 on mortgages for First Time Buyers and Home Movers, it helps to support customers with the cost of running their new home by increasing their disposable income.

In 248 out of the 380 Council Tax charging areas, mortgage customers in a Band D property or higher will recieve a payment of more than the average of £27.84 in disposable income.  That’s almost two thirds (65%) of Council Tax charging areas potentially receiving the above average payment of £27.84.

From a regional point of view, people in the North East stand to benefit the most from TSB’s offer, with an average 10.9% (£29.87) increase in disposable income.  This is because the North East has on average, the highest level of Council Tax at £1,557, which is 7% higher than the average across Britain, but the region has the lowest disposable income at £14,393 – which is 14% lower than the average. 

This is followed closely by the North West whose homebuyers stand to gain 10.1% (£29.17) increase in their disposable income. The North West has the fourth highest level of Council Tax at £1,521, 5% higher than the average and the fifth lowest disposable income at (£14,939). 

Council Tax Area Winners

Residents in the City of Nottingham, which has the lowest level of disposable income at £11,411, will see the highest percentage increase to disposable income as a result of this offer at 14.7% (£32.14) with the average Council Tax of £1,676. 

This is closely followed by Leicester City UA (13.1%, £29.00), Blackburn with Darwen UA (12.9%, £28.60), which has the second and third lowest disposable income levels at £11,539 and £11,582, respectively (table one).

Top 10 areas which could see the highest percentage added to their disposable income using the TSB Council Tax deal:

1. City of Nottingham
2. Leciester City
3. Blackburn with Darwen
4. Walsall
5. Redcar & Cleveland
6. Livepool
7. Middlesbrough
8. Wolverhampton
9. Blaenau Gwent
10. Blackpool

In addition to the above, areas showing the highest percentage increase for customers in disposable income within their region include: Kingston Upon Hull (Yorkshire and The Humber 11.4%, £26.74 per week), Southampton UA (South East 11.1%, £28.84), Luton UA (East of England (11.1%, £28.17), Plymouth UA (South West 10.6%, £29.49 per week), Havering (London 8.9%, £28.66 per week) and Glasgow (Scotland 8.6%, £23.26. per week), see table two.

However, in real terms, it is customers in Weymouth and Portland, in the South West, that could have the greatest weekly increase at £33.10 (9.5%).  This area also has the highest level of Council Tax at £1,726 for Band D.

Differences between England, Scotland and Wales

Homebuyers in Wales could potentially benefit the most with an increase in their disposable income of 8.9% (£24.92), followed by England at 8.7% (£28.63), both slightly above the average of 8.4%.  In Scotland, the average increase would be 7% (£21.81), but this is mainly due to the fact that Scotland has the lowest average Band D Council Tax figure at £1,137. 

Scottish customers could also fare better than Londoners, which would only see a 6.1% increase, £25.04 a week.  London itself contains the three lowest Council Tax charging areas; Westminster £678 (1.8%), Wandsworth £687 (1.9% increase in gross disposable income) and City of London £942 (2.5%), which alongside Hammersmith and Fulham (£1,034, 2.8%), Kensington and Chelsea (£1,082, 2.9%) and Camden (£1,321, 3.6%), have the highest level of disposable income at £36,963 in England, Scotland and Wales. These areas therefore show the lowest percentage increases of disposable income as a result of the offer.

Ian Ramsden, TSB Mortgages Director, says:  “TSB is 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, helps to ease the financial burden often faced by new homeowners when moving into a property. 

“Every eligible mortgage customer will benefit from our Council Tax offer, which puts cash back into their pockets and enables them to spend money on creature comforts and necessities within their new home.  Being able to help people cover these costs brings TSB’s local banking for Britain mantra to life.”

TSB’s Council Tax offer is available up to a maximum of £2,500 on mortgages for First Time Buyers and Home Movers over 75% and up to 90% loan to value.  To qualify for the Council Tax offer, new mortgage customers simply need to send a copy of their initial Council Tax bill relating to the current Council Tax year to TSB and they will receive the annual amount detailed on the bill in their bank account within 21 days.  The offer, which was launched on 29 August, ends on 6 November 2014.

Appointments with qualified mortgage advisors are available in branch or customers are welcome to apply online or by telephone. 

TSB recently launched a new campaign to encourage people to ‘Borrow Well’ helping them to borrow money in a way that makes the best financial sense for them.  This means that all TSB customers receive the right information so that they can make informed decisions.

TSB also offers assistance for people whose mortgage application has been rejected, helping them understand the reasons behind the decline and assisting them wherever possible.