To be eligible for the deal, tenants must contribute a minimum 5% deposit on top of the landlord’s discount.
The 5% option is an addition to the current Concessionary Mortgage deal, where landlords can sell their property to a tenant with a 10% discount or more on its market value. In this case, the tenant would not need a deposit to buy the property.
According to the Government’s English Private Landlord Survey 2024, 31% of landlords are planning to sell properties they rent out in the next two years.
Roland McCormack, mortgage distribution director at TSB, said: “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.”
TSB’s expansion of its Concessionary Mortgage is the latest example of mortgage innovation aimed at helping first-time buyers who are struggling to raise a deposit onto the property ladder.
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This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: TSB adds 5% option to landlord and tenant Concessionary Mortgage deal
