Pepper Money has increased the maximum loan-to-value (LTV) available on concessionary purchases from 75% to 85% of the property’s full market value.

The change reduces the seller discount needed for eligible purchases from 25% to 15%, where the buyer borrows the full discounted purchase price.

Under a concessionary purchase, the difference between the property’s full market value and the discounted purchase price can act as the buyer’s deposit.

Eligible customers can borrow up to 100% of the discounted purchase price, including fees, subject to a maximum of 85% of the property’s full market value and applicable lending criteria.

The lender says the change could help existing tenants buy from their landlord, or relatives buy from a close family member.

Pepper Money director of sales Paul Adams says: “A close family member or landlord may be willing to sell at a discount, but a 25% reduction can be a significant concession.”

“Increasing our maximum LTV to 85% means eligible buyers borrowing the full discounted purchase price can proceed with a smaller concession from the seller.”