Saffron For Intermediaries, the dedicated broker channel of Saffron Building Society, has launched a limited edition five-year fixed rate mortgage for first-time buyers.
The new fixed rate, which is in addition to an existing three-year fixed rate for first-time buyers, comes in at 3.97 per cent fixed until the end of September 2021.
The standard variable rate (SVR) then has a minimum floor of 3 per cent thereafter, and the deal is available up to 95 per cent loan-to-value (LTV).
It comes with an arrangement fee of £495 for loans with a minimum of £30,000 and a maximum of £500,000.
Overpayments of up to 10 per cent per year are allowed without penalty, while early repayment charges are set at 3 per cent of the outstanding balance during the fixed-rate period.
Many customers are failing the high street credit scores, so this is a good product offering from Saffron. Dale JannelsAdviser view
Dale Jannels, managing director at All Types of Mortgages, agreed that a number of first-time buyers have been asking for a long-term fixed rate, and 3.97 per cent fixed for five years at 95 per cent LTV is attractive.
Mr Jannels said: “But this product will also be popular due to the low arrangement fee of £495 and that a human is manually assessing the application.
“Many customers are failing the high street credit scores, so this is a good product offering from Saffron and I suspect that funds will be reserved quickly.”
peter.walker@ft.com
