Aiming to help tenants purchase their rented homes from landlords, TSB has introduced a new 5&5 Concessionary Mortgage option
Aiming to help tenants purchase their rented homes from landlords, TSB has introduced a new 5&5 Concessionary Mortgage option.
Under the scheme, landlords would offer tenants a 5% discount on the property’s market value, with buyers required to contribute a minimum 5% deposit. The initiative is expected to support tenants, particularly first-time buyers, who often struggle to save for a deposit while managing high rental costs.
The new option will operate alongside the high street lender’s existing 10% concessionary mortgage scheme, which allows landlords to sell properties to tenants at a discount of 10% or more, eliminating the need for a buyer’s deposit.
With government figures indicating that 31% of landlords plan to sell their rental properties within the next two years, TSB said its 5&5 option could appeal to those looking for a quicker, more cost-effective sale. By offering a 5% discount, landlords could offset the cost through savings on estate agent fees and avoiding extended periods of paying mortgage interest or losing rental income while the property remains on the market.
Roland McCormack (pictured), mortgage distribution director at TSB, believes the new scheme will help bridge the gap between renting and homeownership.
“TSB Concessionary Mortgages are already helping customers to secure the property they call home,” he said. “Increased mortgage costs mean many landlords want to release their gains and exit the market. A 5% discount could be entirely offset by the savings on estate agency fees and not missing out on several months of rental payments.”
For Nicholas Mendes, mortgage technical manager at broker John Charcol, the introduction of TSB’s 5&5 Concessionary Mortgage is a commendable initiative as it seeks to provide meaningful support for first-time buyers.
“By helping tenants overcome the barrier of saving for a deposit, while also offering landlords an efficient sale process, this scheme benefits both parties,” he said. “While it may not suit everyone, it represents a positive step towards addressing the challenges faced in today’s housing market.
According to Mendes, the variety of schemes now available from lenders is worth celebrating.
“From 100% LTV mortgages and borrowing up to six times income, to innovative concessionary purchase options, these solutions cater to a range of buyer needs,” he added. “Each scheme plays a role in making homeownership more accessible and helping more people realise their property ambitions.
“Such initiatives signal a welcome shift in tackling financial obstacles for buyers, while also creating smoother transitions for landlords exiting the rental market. It’s an encouraging development for the property sector.”
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.
