TSB launches new 5&5 Concessionary Mortgage Option

TSB is launching a new Concessionary Mortgage option to give more tenants the option of purchasing their home from their landlord.

TSB’s new 5&5 Concessionary Mortgage would see landlords offer tenant buyers a 5% discount on the purchase price, with the buyer contributing their own deposit on top – a minimum of 5%.

Concessionary Mortgages help tenants and often First Time Buyers who are hardest hit due to paying higher rent costs and having little opportunity to build their deposit to buy their first home. This will operate in addition to TSB’s 10% scheme where landlords sell their property to a tenant with a 10% discount or more on its market value.

With Government data showing that a third of landlords (31 per cent) are planning to sell properties they rent out in the next two years, this new 5% option could be a more attractive option for landlords planning a sale as they could offset the 5% discount through savings on estate agent fees or paying several months of mortgage interest while the property is empty and on the market.

Roland McCormack, Mortgage Distribution Director at TSB said:

“TSB Concessionary Mortgages are already helping customers to bridge the gap between renting and home ownership, making it easier for tenants to secure the property they already call home. Increased mortgage costs mean many landlords want to release their gains and exit the market, and a 5% discount could be entirely offset by the savings on estate agency fees and not missing out on several months of rental payments."

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Notes to Editors

• According to the Government’s English Private Landlord Survey 2024: 31% of landlords reported planning to decrease the size of their portfolio in the next two years, including 16% who were planning to sell all their properties.

Concessionary Purchase

Concessionary purchases can only be agreed for subsequent sales (not new build) up to 100% of the purchase price (subject to normal lending limits) in the following circumstances:

1. The property purchase is solely for the applicant(s) to live in as their main residence and the applicant is:

2. Purchasing from an immediate family member* at a discounted price and the vendor must move out on completion OR A sitting tenant purchasing from their landlord (private or council) at a discounted price (either a 5% or 10% discount is required).

3. To qualify, the tenant must have been subject to a tenancy agreement on the property for a minimum of 1 year.