The new product has no arrangement fee and will only be available for a limited period until the tranche of funding is fully allocated.
Anita Arch, head of mortgage sales at Saffron, said: “This new fixed rate deal has been specifically designed for first-time buyers, with no arrangement fee and the benefit of portability.
“Funding will be available for a limited period only and we’re anticipating strong demand from brokers and their clients.”
* Three-year fixed rate of 3.97 per cent up to 95 per cent LTV. The rate then reverts to Saffron’s standard SVR (currently 5.39 per cent) after the fixed rate period has ended
* Early repayment charge of 3 per cent until 31 May 2019
* Minimum loan size of £30,000 and maximum of £500,000
James Carter, principal of London-based Independent James, said: “There are cheaper rates available at that loan to value but with no arrangement fee it seems pretty competitive.
“First-time buyers are often quite fee sensitive.”