TSB improves mortgage scheme designed to help renters buy from their landlords

by Aaron Strutt

Jan 07 2025

TSB for Intermediaries is offering a new mortgage option to help tenants buy their rented homes from their landlords.

TSB’s “5&5 concessionary mortgage” is available when landlords offer tenants a 5% discount on the purchase price. The buyer contributes a minimum of 5% of their own deposit.

The mortgage will operate in addition to the bank’s 10% scheme. Under this scheme, landlords sell their property to tenants at a 10% discount or more on its market value, meaning the buyer doesn’t need a deposit.

According to the government's latest English private landlord survey, the lender points out that 31% of landlords plan to sell properties they rent out in the next two years, mainly because of increased mortgage costs, higher taxes and additional regulation.

Increased mortgage costs mean many landlords want to release their gains and exit the market. A 5% discount could be offset by the savings on estate agency fees and not missing out on several months of rental payments.

Aaron Strutt, product director at Trinity Financial, says: “This is a pretty niche product from TSB, but it is helpful for landlords and tenants. Concessionary purchase mortgages are usually related to family property transactions, such as when a parent sells to their adult children at a reduced price.

“Some landlords are keen to sell their properties to long-standing tenants often because they have a good relationship with them but also because they don’t have to go through the hassle of finding a buyer or paying estate agency fees.”

TSB’s product means tenants with more generous landlords and a 5% deposit can access slightly cheaper mortgage rates. 

Roland McCormack, mortgage distribution director at TSB, said: “This can be a great option for the buyer as they get a discount, but also because they know the area and the property well already. It makes the process easier and smoother. For the seller, it makes the process easier and smoother. They don’t have to have a tenant move out of the property, do it all up, and then wait several months – all while not receiving rent."

Could Skipton's Track Record mortgage be an alternative option? 

Skipton for Intermediaries is still offering its 100% Track Record mortgage to those renting and not owning a property in the last three years.

Applicants must have paid all the rent for 12 months in a row, within the last 18 months and the lender may want to see proof that household bills have been paid and on time. Borrowers must be over 21 to apply, have no missed payments on any credit agreements within the last six months, and borrow up to £600,000.

Call Trinity Financial on 020 7016 0790 to secure a buy from your landlord mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

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