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Saffron BS resumes 95 per cent LTV lending for first-time buyers

  • 28/07/2021
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Saffron BS resumes 95 per cent LTV lending for first-time buyers
Saffron for Intermediaries has launched a pair of mortgages at 95 per cent loan to value (LTV) for first-time buyers, marking its return to the lending tier.


The mutual launched mortgages for those with a five per cent deposit for a limited period in June last year, before withdrawing two days later due to high demand. 

The products launched today include a two-year fixed rate at 3.67 per cent and a five-year fixed rate at 3.87 per cent. 

These deals have no arrangement fee and offer a free valuation. 

Saffron has also relaunched two of its first-time buyer products at 90 per cent LTV with lower rates. These include the two-year fixed product with a rate of 3.57 per cent and the five-year fixed at 3.77 per cent. 

They have the same incentives of a free valuation and no arrangement fee.   

Tony Hall (pictured), head of mortgage sales at Saffron Building Society, said: “We have been planning a return to 95 per cent lending for some time and wanted to make sure we had the best possible products to come back to the market with.” 


Self-employed and contractor range 

The lender also launched a couple of two-year fixed rate products to its self-employed and contractor range at 85 per cent LTV. 

The self-employed offering has a rate of 4.17 per cent while the contractor product is priced at 4.07 per cent. 

The mutual will accept self-employed borrowers with one to two years’ accounts, while those with three or more years will qualify for a standard owner-occupier mortgage. 

Hall said the mutual’s commitment to the self-employed during the pandemic was something to be proud of. 

Rather than striking off borrowers because they had taken a loan or seen reduced trading, Hall said Saffron looked at cases on an individual basis and based decisions on whether grants had been spent or business had recovered. 

He also said Saffron made sure to engage with borrowers to let them know of any criteria or underwriting changes. 

He added: “Our commitment to those who are self-employed has always been something we are very proud of and will continue. Whilst some have had issues with other lenders rejecting applications, we have taken a common sense approach to our lending.  

“Our dedicated BDM team have worked solidly throughout the last year with brokers to ensure they know what they need for a successful application and what additional information can help with an application. Doing this has meant we have provided a mortgage to those who may have been rejected elsewhere.” 

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