Saffron is offering contractors with a 10% deposit a five-year discounted rate of 4.09%.
Other five-year discount mortgages for contractors include an initial rate of 3.29% to 70% LTV, 3.79% to 80% LTV, and 3.89% at 85% LTV. All the deals come with a £1,250 arrangement fee.
Saffron calculates contractors’ income as the daily rate multiplied by five and 48. Borrowers must have a minimum six-month term left on their contract and a minimum contract history of six months to 80% LTV, rising to two years for 90% LTV.
David Hollingworth of London & Country said more lenders focusing on the contracting sector will increase the options for borrowers. “More lenders are recognising that contracting is more common in today’s workplace and anything to provide a more flexible and accommodating approach should be welcomed,” he said.
Saffron For Intermediaries has also launched a new two-year discount product for first-time buyers at 95% LTV. The deal has an initial pay rate of 4.49%, no arrangement fee and £500 cashback.
Saffron has cut rates on its owner-occupier three-year discounts and introduced a new 60% LTV band.
Owner-occupiers with 40% equity can get a discount rate starting at 2.19% for three years.
Other rates in the range include:
– 2.29% three-year discount to 70% LTV (previously 3.19%)
– 2.39% three-year discount to 80% LTV (previously 3.59%)
– 3.29% three-year discount to 90% LTV (previously 3.99%)
There is no arrangement fee – it was previously £995.
Brokers can access the new products via a panel of distributors which includes 3mc, AToM, Brightstar, Complete FS, L&G Network, Platinum Options, TBMC and Vantage.