Saffron For Intermediaries is offering borrowers the option to repay their mortgages on an interest-only basis, across its occupational range of loan products.
This includes loans for the self-employed, contractors and professionals - e.g. accountants, lawyers, doctors and dentists - with interest-only mortgages available up to 70 per cent loan-to-value and subject to an acceptable repayment strategy being in place.
The dedicated intermediary channel of Saffron Building Society has also made a number of additional criteria changes to its full range of mortgage products.
| Criteria changes: |
| The minimum age of applicants has been reduced to 21 on all products |
| The maximum loan for first-time buyers living within the M25 has been increased from £500,000 to £1m, up to a maximum of 90 per cent LTV |
| Contractors need only show two years’ experience in the same type of employment, along with evidence of a new or existing contract |
Head of mortgage sales Anita Arch stated: “We regularly review our criteria to ensure they remain competitive and are delighted to be announcing these enhancements today.
“They provide intermediaries with further flexibility when advising their clients about Saffron’s products.”
Hugh Wade-Jones, managing director at London-based broker Enness Private Clients, said interest only mortgages are good for a number of reasons: professional people generally grow their income as their career progresses, so it’s handy to have the lower monthly payments for the first few years, plus they can then pay off chunks of the mortgage as and when it suits them
“Furthermore, using the sale of a property as a repayment vehicle is not a problem, as borrowers are usually looking to downsize their property by the end of the loan; usually when the kids have left home and they don’t need as much space.”
peter.walker@ft.com
