Saffron BS relaunches 95% deal for FTBs
The mortgage has a rate of 6.49%, which is fixed until 29 February 2016 and includes a £195 arrangement fee.
The mortgage is available direct from Saffron Building Society’s branches and by phone and via intermediaries for those in the Essex, Hertfordshire, Suffolk, Norfolk and Cambridgeshire areas.
Saffron Building Society will review applicants using the combined assessment of the prospective buyer’s rental payment history, their disposable income and ability to afford the mortgage, along with the standard credit history checks.
Saffron said buyers can purchase an open market property, no guarantor is required for the mortgage and the Society does not require the applicant to hold accounts or products with them. The product is funded via retail deposits.
Jon Hall, CEO of Saffron Building Society said: “At a time when rents are at an all-time high and mortgages are difficult to secure, we want to make it as easy as possible for first-time buyers.
“We know that there are many potential first-time borrowers who are capable of supporting a mortgage as they have been paying these amounts in rent already, but are ‘frozen out’ of the market by the large deposits required.
“We steer clear of the ‘computer says no’ approach adopted by too many lenders; for example looking at affordability using rental history, not just income multiples. Our manual underwriting looks at each case individually to assess the affordability of the mortgage for the applicant, making it highly suitable for first-time buyers.”
Hall added that Saffron is looking at the government’s Funding for Lending scheme.
“We are not expecting to access this within the next three months. We don’t feel it is geared towards smaller lenders and the requirements have too many strings attached, but we do have to remain competitive in this market still.”