For self-build mortgages, the maximum loan size has been raised from £3m to £4m. Saffron claims to be the only lender at this limit for self-build borrowing.
Its residential large loan offering is new and allows borrowers up to £5m which is an increase from the previous £3m limit on residential borrowing. This is available up to 80 per cent LTV.
The mutual said this would give brokers certainty of the interest rate available upfront as larger loan rates tend to be bespoke.
For residential borrowers, the five-year fixed option for large loan borrowing has a rate of 5.67 per cent at 80 per cent LTV. There is a variable rate option also fixed for two years and at 80 per cent LTV, which is discounted 2.7 per cent from the lender’s standard variable rate (SVR), currently making it 6.09 per cent.
On its self-build mortgages, the two-year discount rate at 75 per cent LTV is priced at 7.09 per cent and at 80 per cent LTV this is 7.27 per cent. These represent discounts of 1.7 per cent and 1.5 per cent from the mutual’s SVR.
Saffron Building Society has also reduced rates by up to 0.7 per cent across its two and five-year fixes at 80 and 90 per cent LTV for residential, self-employed, contractor, and buy-to-let borrowers.
Rates start at 5.67 per cent for a five-year fixed residential mortgage at 80 per cent LTV.
LTV changes
The mutual has also amended its LTV limit on its retirement interest-only (RIO) range and added a 90 per cent LTV option for first-time buyers.
It will now lend up to 60 per cent LTV on a RIO product with a power of attorney, with an option priced at a three per cent discount from its SVR making the current rate 5.79 per cent.
For the RIO without a power of attorney, the option at 60 per cent LTV will be priced at 6.09 per cent which is 2.7 per cent lower than its SVR.
At 90 per cent LTV, the five-year fix for first-time buyers has a rate of 6.37 per cent.
Tony Hall (pictured), head of business development at Saffron for Intermediaries, said: “At Saffron, we pride ourselves on working closely with brokers to understand exactly what they want and need, reflecting these conversations in frequent enhancements to our product criteria. We know that placing larger loans can often be a challenge, and so are delighted to increase our maximum loan sizes today. This aligns with the enhancements to our self-employed product range announced in September, helping to ensure that we provide a well-rounded offering in the complex lending space.
“Today’s developments are just one way that we aim to help brokers to support borrowers who might not fit into traditional lending criteria. We are excited to help as many people as possible achieve their dream of homeownership.”
