Pepper Money has introduced new Concessionary Purchase criteria which now allows 100% loan-to-purchase price.

The means borrowers can purchase a property below market value. Although this is typically from close family, the lender is also able to offer this to tenants who are looking to buy from their landlords.

This improves Pepper Money’s current Concessionary Purchase offering, enabling customers to borrow up to 100% loan-to-purchase price, with no deposit required, and is available up to a maximum of 75% of full market value.

Before this change, Pepper would allow Concessionary Purchases but use the lower purchase price for the product LTV, requiring a 15% deposit from the applicant’s own funds.

Paul Adams, sales director at Pepper Money, said: “This improvement to our Concessionary Purchase proposition is further evidence of Pepper’s ongoing commitment to help Hopeful Homeowners onto the property ladder.

“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.”