Customers can now borrow 100% of the purchase price for below-market-value properties
Pepper Money has updated its concessionary purchase criteria, now allowing customers to borrow up to 100% of the purchase price for properties bought below market value.
The enhanced offering applies to purchases from close family members and, for the first time, to tenants purchasing properties from their landlords.
Under the new criteria, no deposit is required, with loans available for up to 75% of the property’s full market value. This marks a significant change from Pepper Money’s previous approach, which required applicants to provide a 15% deposit from their own funds when applying for concessionary purchases.
The lender said the enhancement addresses growing demand from tenants seeking to purchase homes they currently rent, while continuing to support family transactions, the most common use of concessionary purchases.
“This improvement to our concessionary purchase proposition is further evidence of Pepper’s ongoing commitment to help hopeful homeowners onto the property ladder,” said Paul Adams (pictured), sales director at Pepper Money. “Concessionary purchase offers many benefits for buyers – not only are they able to obtain the property at a discount, but they could also secure a cheaper mortgage rate in comparison to a higher LTV rate that might ordinarily be associated with first-time buyers.
“Our Specialist Lending Study has consistently identified that deposit remains one of the largest barriers to customers purchasing a property. So, the fact that this enhancement will enable buyers to borrow up to 100% of the purchase price, could be a life-changer for some customers.
“We’ve made these changes in response to feedback gained from our broker partners in the forums we regularly hold. Brokers play such a key role in shaping our proposition and ensuring we’re all able to assist our customers better. We’re delighted to have launched this improved criteria today.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
