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Saffron BS ups self-employed lending to 90 per cent LTV and amends policy

  • 29/09/2021
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Saffron BS ups self-employed lending to 90 per cent LTV and amends policy
Saffron Building Society has launched a pair of 90 per cent loan to value (LTV) mortgages for self-employed and contractor borrowers, increasing the LTV limit from 85 per cent.


It has also changed its policy to potentially discount the financial year 2020/2021 for businesses trading before the period. 

The mutual previously attempted to support self-employed workers and those on short-term employment contracts by considering one to two years of accounts instead of the usual three. 

At 90 per cent LTV, the products include a three-year discounted rate at 4.29 per cent for self-employed borrowers and a contractor equivalent with a discounted rate of 4.19 per cent. 

Tony Hall (pictured), head of mortgage sales at Saffron Building Society, said it was always the mutual’s aim to re-enter 90 per cent LTV lending for self-employed and contractor applicants before the end of the year. 

He added: “We know that support for the self-employed was tough to come by. But we are also aware that businesses have been resilient, have diversified to keep afloat and are now back trading the same, with most actually stronger than before the pandemic. It seems so unfair that a year of atypical accounts can hamper those hardworking people from getting a mortgage.” 

Hall said while Saffron’s underwriting team would be able to potentially overlook the last financial year when conducting affordability assessments, he stressed this would not be open to everyone. 

“If the company had a strong year of accounts before the pandemic year and is trading well now, their dreams of getting a mortgage may not be shattered. If any broker has had a case rejected recently, by any lender, or have recently discussed a case with a client, I would encourage them to have a chat with our team, as they may find that they qualify,” he added. 

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