You are here: Home - News -

Saffron offers self-employed 90% LTV with one years’ accounts

by: Heather Greig-Smith
  • 06/06/2017
  • 0
Saffron offers self-employed 90% LTV with one years’ accounts
Saffron for Intermediaries has begun offering self-employed borrowers 90% loan-to-value (LTV) with one years’ accounts.

Saffron has also enhanced its first-time buyer and owner-occupied mortgages by raising LTVs and launching fixed rate and low-cost discounted rate options.

The lender’s self-employed offer was previously up to 85% LTV. The variable rate is currently 3.99%, discounted 1.4% on the Standard Variable Rate for five years with an arrangement fee of £1,250.

Anita Arch (pictured), 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 an underwriter and we guarantee a fast and personal service.”

Mark Dyason, director of Edinburgh Mortgage Advice, said the five year tie-in to a variable rate means borrowers will need to think carefully. However a low 1% early repayment charge may mean it is still attractive.

He pointed to the fact that Halifax will consider borrowers with one years’ accounts and one year projections but that not everyone will be able to supply that.

“That’s where Saffron is pushing the envelope,” he said. “It’s a solution but I don’t think it will fit for everyone. You could pay an accountant to do one year accounts and projections for you and get a two-year fix from Halifax.”

However, Dyason said the option may appeal particularly to remortgage customers. “On the remortgage side there is a chance that there’s a space in the market for those who have just set up a company and need a solution – with a 1% tie in if it gets too expensive they could pay that [to exit].”

Ray Boulger, senior technical manager at John Charcol, said Saffron’s manual underwriting approach means it can adapt more quickly than many lenders. “They will look at non-standard cases in a more sensible way,” he said.

As activity dips in the market, Boulger said lenders will need to be creative if they are to maintain volumes and hit the targets they have set for themselves.

“We are generally seeing lenders tweak criteria in a number of areas that are helping in the margins, though nobody is making massive criteria improvements.

“There are areas of the market that were tightened up after the credit crunch that are still tighter than they need to be, in my view. The challenge for lenders is to find areas where they can tweak criteria but still lend sensibly. Manual underwriters can do that more easily.”

A survey carried out by Paragon, of 200 brokers, found that 24% of mortgage applicants seen by brokers in quarter one were self-employed, a 1% rise on the previous quarter. Those with complex income requirements accounted for 17% of applicants seen, an increase of 2% on the previous quarter.

The other enhancements announced today by Saffron include a cheaper first-time buyer five-year fix at 3.67% for 95% LTV with no arrangement fee. In addition, it now offers a remortgage rate of 1.15% to 60% LTV (which can also be used for purchase) or 1.25% to 80% LTV.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Labour promises mass council house build and Stamp Duty holiday on affordable FTB housing

The Labour party stepped up its pledges on housing yesterday with promises to ‘slash’ the cost of a home for...