The mutual said the decision to resume shorter mortgage terms for first-time buyers came at a “perfect time” as property sales in this segment of the market were rising fast.
Saffron Building Society paused new mortgage applications in August last year to protect its service levels, then returned to the market in January this year. This suspension applied to all products except its self-build mortgages and when it came back to the market, the minimum initial period for first-time buyers was five years.
The newly relaunched two-year fixes are available at 90 per cent and 95 per cent loan to value (LTV) with respective rates of 5.57 per cent and 5.87 per cent. The mortgages have no application or arrangement fees and offer a free standard valuation.
Self-build moves
Across its self-build range, the rate of its 75 per cent LTV deal has been reduced from 5.59 per cent to 5.39 per cent which is a 2.6 per cent discount off the mutual’s standard variable rate.
It has also published a self-build guide for brokers to help them better understand this part of the market and assist with the application process.
Tony Hall (pictured), head of business development at Saffron Building Society, said: “We are delighted to continue to support the vibrant self-build market with this rate reduction on loans up to £1m, which will allow even more people to realise their dream of building their own home.
“As we enter self-build season in the UK, we have published our new self-build guide which has been developed with one main objective in mind: to support brokers in the application process so that they can confidently advise clients on this big growth opportunity.”
