Saffron has cut rates and removed early redemption charges (ERCs) from discounted product in a revamp of its self-employed and contractor mortgages.
The specialist lender has launched a 90 per cent loan-to-value (LTV) fixed rate for the self-employed and a 60 per cent LTV band has been introduced for borrowers with significant equity who want to remortgage or move home.
Three-year discounted rates for the self-employed are available at 2.49 per cent to 60 per cent LTV, 2.79 per cent to 80 per cent LTV and 3.39 per cent to 90 per cent LTV.
All are ERC-free and have an arrangement fee of £499.
Fixed rates are available at 3.27 per cent until 30 April 2021 to 80 per cent LTV and 3.77 per cent fixed until the same date to 90 per cent LTV.
Both products have an ERC of 3 per cent until the end of the fixed rate period and an arrangement fee of £999.
The mortgages are available to anyone, including first-time buyers, who is self-employed and has trading accounts of one year or more.
Contractors can opt for three-year discounted rates at 2.39 per cent to 60 per cent LTV, 2.69 per cent to 80 per cent LTV and 3.29 per cent to 90 per cent LTV.
All are ERC-free and have an arrangement fee of £499.
Fixed rates are 3.17 per cent until 30 April 2021 to 80 per cent LTV and 3.67 per cent until the same date to 90 per cent LTV.
Both products have an ERC of 3 per cent until the end of the fixed rate period and an arrangement fee of £999.
Anita Arch, head of mortgage sales at Saffron, said: “The self-employed and contractors are a growing sector of our national workforce and these enhancements will help them to drive-down the cost of either purchasing or remortgaging property.
“We’re now offering a choice of either fixed rates to end April 2021, or ERC free three-year discounts allowing borrowers to make unlimited overpayments without penalty. All products are also available on an interest-only basis up to 70 per cent LTV.”
Michelle Lawson, director at Hampshire-based Lawson Financial, said the rates were not market-leading but added "the self-employed and contractor market is booming at the moment, and it is good to see lenders that are actually thinking outside the box a bit more.”
simon.allin@ft.com
