TSB unveils new mortgage to help tenants buy their rented home

TSB unveils new mortgage to help tenants buy their rented home

0:01 AM, 9th January 2025, About A week ago 4

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TSB is expanding its support for tenants looking to buy their rented home with the launch of a 5&5 concessionary mortgage option.

This new scheme allows landlords to offer tenants a 5% discount on the property’s purchase price, with the buyer contributing a minimum 5% deposit.

This complements TSB’s existing 10% scheme, where landlords offer a 10% or greater discount, eliminating the need for a deposit from the tenant buyer.

Concessionary mortgages are designed to assist tenants, particularly first-time buyers, who often face barriers to homeownership due to high rents and limited opportunities to save for a deposit.

Renting and home ownership

The lender’s mortgage distribution director, Roland McCormack, 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.”

With government data indicating that 31% of landlords plan to sell their rental properties within the next two years, TSB says the 5% discount option may prove more appealing to landlords.


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Mick Roberts

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9:44 AM, 9th January 2025, About A week ago

I've put this to 5 or so or me tenants that could buy this morning. I don't hold out hope.
Although I am selling most of mine in next 2 years.

Jason

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10:02 AM, 9th January 2025, About A week ago

I aways offer to sell to the tenant at a discount regardless of their financial situation before I market the property elsewhere. Yet to be taken up but I agree in principle with the concept.

dismayed landlord

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12:39 PM, 9th January 2025, About A week ago

Reply to the comment left by Jason at 09/01/2025 - 10:02
I ve tried on 3. Discounted as incentive. Well I save agents fees and no voids so it’s a win win for us both. One did. After nearly a year they just could not afford it. . Shame but it seems a tricky one to get right.

Alison Clark

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11:01 AM, 11th January 2025, About 6 days ago

Reply to the comment left by dismayed landlord at 09/01/2025 - 12:39
Hi dismayed Landlord. I have sent an enquiry on this platform to Landlord Sales Agency and National Residential. They have already responded to arrange a call. I am also wondering to ask the tenant if they wish to purchase the property during his final inspection in a couple of weeks. Fixed term ends 27/5/25. I am fully managed and did consider transferring over from lettings to sales with current agent, although with regards lettings they have not been great! My thoughts were at least they know the property and it may help if any eviction issues following s21.
With regards selling direct to tenants (rent is paid, but it’s been a challenging tenancy) is this straight forward please? any advice would be welcome as I prepare sadly to leave BTL after one AST.

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