The lender said it discounted rates on self-build products to absorb the standard variable rate (SVR) increase that has come about due to the rate rise from the Bank of England.
Saffron’s two-year fixed rate self-build product at 75 per cent loan to value (LTV) up to £1m is now priced at 3.79 per cent, and at 80 per cent LTV the rate is 3.99 per cent.
Two-year fixed rates for its self-build large loan products, which is between 75 and 80 per cent LTV, are 4.49 per cent at 75 per cent LTV and 4.69 per cent at 80 per cent LTV.
The lender added that there would be no application fee, which was £300, and a reduced product fee from one per cent to 0.5 per cent.
The changes are part of the mutual’s summer mortgage campaign aimed at brokers, which will provide a selection of offers to support brokers and their clients.
Tony Hall (pictured), head of mortgage sales at Saffron Building Society, said the firm wanted to celebrate the summer with “tempting deals” for brokers and clients.
“We know times are tough so we have worked hard to bring together updates that will offer immediate upfront cost savings for mortgage applicants, that we hope will help to alleviate the strain of the rising cost of living,” he said.
He said that this was the “most significant saving ever seen on self-build mortgages” and by absorbing the SVR increase by cutting rates it was offering a two-year fixed rate at a discount throughout the summer, which would give a longer term saving for the borrower.
“Combine that with a discounted product fee and an upfront saving by removing the application fee, it has never been a better time for self-build dreamers to swap the sun hat for the hard hat. We are ready to support brokers and will provide plenty of information in the coming days, on our website and across our social media channels in the coming days and weeks,” he said.
