From Tenant to Homeowner: TSB’s “5 & 5” Scheme Opens Doors
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In a bid to support first-time buyers in their journey onto the property ladder, TSB has introduced a new mortgage option tailored to tenants looking to purchase their rented homes. This innovative offering aims to address the affordability challenges faced by many aspiring homeowners, providing a practical solution for tenants and landlords alike.
TSB’s newly launched “5 & 5” concessionary mortgage allows tenants to buy their rented property with a 5% discount on its market value offered by their landlord, coupled with a 5% deposit. This approach not only reduces the financial burden for the tenant but also offers landlords a streamlined exit strategy from the rental market without incurring additional costs, such as estate agent fees.
This new product builds upon TSB’s existing 10% concessionary scheme, which enables tenants to purchase their homes without a deposit when their landlord provides a 10% discount on the property's purchase price.
According to the governments “English Private Landlord Survey 2024, ‘31% of landlords are planning to sell at least one of their rental properties in the next two years, with 16% planning to sell all of their properties and leave the rental market altogether.’ TSB have noted this shift in landlord sentiment and have offered a solution that can benefit both tenants and landlords alike.
Roland McCormack, Mortgage Distribution Director at TSB, stated: “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 home ownership remaining a distant dream for many, TSB’s proactive approach is a welcome development. It not only recognises the challenges faced by first-time buyers but also addresses the changing dynamics of the rental market, ensuring a win-win solution for all parties involved. As more landlords consider selling their properties, schemes like TSB’s could play a pivotal role in helping tenants take their first steps towards owning a home.
Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
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The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Source: TSB for intermediaries