Saffron for Intermediaries has slashed rates by up to 1 per cent and extended product terms for first-time buyers, the self-employed and contractors.
The specialist lender has cut the rate on its 95 per cent loan-to-value (LTV) first-time buyer deal from 3.97 per cent to 3.57 per cent and extended its term from 30 June 2020 to 31 October 2020.
Meanwhile, Saffron’s self-employed mortgage up to 80 per cent LTV has been slashed from 3.79 per cent to 2.79 per cent variable for five years, with the arrangement fee dropped from £1,250 to £625.
Self-employed borrowers taking out a loan at 85 per cent LTV benefit from a rate cut from 3.97 per cent to 3.67 per cent, while the product term has been extended from 31 January 2020 to 31 January 2021.
The lender’s 80 per cent LTV loan for contractors has been reduced from 3.79 per cent to 2.79 per cent variable for five years, and the arrangement fee has been cut from £1,250 to £625.
Contractors borrowing at 90 per cent LTV can now do so at 3.67 per cent fixed until 31 January 2021 instead of the previous rate of 3.97 per cent fixed to 31 January 2020.
Anita Arch, head of mortgage sales at Saffron, said: “We’re delighted to be making these products even more competitive, by cutting rates and extending the product terms on several products.
“As well as offering great rates, all applications are assessed on their own merits by a skilled underwriter and we guarantee a fast and personal service.”
Dominic Basilea, director at St Albans-based Aqua Wealth Management, said: “The rate cuts for mortgages are a good thing.
"With rates still so low, having a rate cut for the self-employed and contractors provides more options for them.
“But it is not just the rate cuts; it is the guidelines. We have had high-street lenders offer very good rates, but when the client applies they decline it because they have a non-authorised overdraft.
“I would rather see a little more understanding of how clients make payments and look at the history rather than just the rate itself.”
simon.allin@ft.com
