Saffron For Intermediaries has launched a limited edition five-year fixed rate mortgage for owner-occupiers.
The deal comes at a rate of 2.57 per cent, fixed until the end of September 2021 - then standard variable rate with a minimum floor of 2 per cent - up to 75 per cent loan-to-value.
It has a £1,495 arrangement fee and is available on loans with a minimum of £30,000 and a maximum of £1m.
Additional payments of up to 10 per cent a year are allowed without penalty, with an early repayment charge set at 3 per cent of the outstanding balance during the fixed rate period.
Anita Arch, head of mortgage sales at the building society, said: “Borrowers will also benefit from Saffron’s individual underwriting, which is not dependent on credit scoring and intermediaries will receive a fast and efficient service.”
This latest launch follows a similar ‘limited edition’ deal in March, targeting first-time buyers with a 3.97 per cent fixed rate for five years.
Saffron has also recently updated its affordability calculator, to ensure it remains aligned with the most recent household expenditure data produced by the Office for National Statistics.
The changes have been designed to ensure borrowers do not over-commit their finances, resulting in enhancements particularly beneficial to families and higher income earners.
It added that intermediaries can access the calculator on Saffron’s website, inputting client data so affordability can be checked before submitting a decision in principle.
Islay Robinson, chief executive of broker Enness Private Clients, said usually the flexible criteria of lenders like Saffron comes at the cost of a discounted variable rate, “so it’s very unusual to see a product like this on the market”.
He stated the new deal has “the best of both worlds” in higher income multiples than the high street and higher age limits, packed into a fixed rate product.
“It’s fantastic to see them responding to the current penchant for locking into a rate, giving borrowers more certainty over their monthly payments, without prohibitively tightening their criteria.”
peter.walker@ft.com
