Saffron For Intermediaries has improved its self-employed, first-time buyer and owner-occupied mortgages by raising loan-to-values (LTVs) and launching fixed rate and low-cost discounted rate options.
For self employed applicants, including first-time buyers with just one year of accounts, the LTV has increased to 90 per cent from 85 per cent.
The interest rate is 3.99 per cent discount (SVR minus 1.4 per cent) for five years with an early repayment charge of 1 per cent.
There is also an arrangement fee of £1,250 with a minimum loan of £30,000 and a maximum of £500,000 available over repayment of periods up to 40 years.
The building society is also offering first-time buyers a cheaper five-year fixed rate with no arrangement fee and LTV of 95 per cent.
The rate has been cut from 3.97 per cent to 3.67 per cent and fixed until 31 December 2022.
There is now no arrangement fee. It was formerly £495.
Saffron is one the best societies for the self-employed and 90 per cent LTV with one year’s accounts is a highly flexible offer.Ray BoulgerThere is an early repayment charge of 3 per cent until 31 December 2022.
The minimum loan size is again £30,000 and the maximum is set at £500,000 (up to £1m within the M25 subject to max 90 per cent LTV and underwriter assessment) over repayment periods of up to 40 years.
The society has also improved its remortgage rates for owner-occupiers.
The rate is 1.15 per cent to 60 per cent LTV (SVR minus 4.24 per cent). The product also comes with £800 cashback, which can be used to help cover remortgage costs.
Anita Arch, head of mortgage sales at Saffron, said: “These enhancements offer significant benefits for most borrowers be they purchasers, remortgaging, first-time buyers or self-employed.
“All mortgage applications will be assessed on their own merits by a skilled underwriter and we guarantee a fast and personal service.”
James Carter, principal of Independent James said the new deals were "a really competitive new suite of products and welcome improvements, particularly increasing the LTV for self employed individuals who are now seeing options open up for them.”
Ray Boulger, senior technical manager of John Charcol, said: “Saffron is one the best societies for the self-employed and 90 per cent LTV with one year’s accounts is a highly flexible offer.”
stephanie.hawthorne@ft.com
