"Today’s developments are just one way that we aim to help brokers 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"
- Tony Hall - Saffron
According to Saffron, the maximum loan size has been increased from £3m to £4m on its Self-Build Large Loan products. It is the sole lender to source Self-Build to this limit.
Additionally, Saffron has announced it has launched a new product category – Residential Large Loan – which it will source up to £5m (up from £3m), at up to 80% LTV. Sourcing to £5m provides brokers with certainty of interest rate at the point of sourcing which is not always the case where larger loan rates are bespoke.
Residential maximum loan enhancements
The extended maximum loan sizes start at 5.67% for its Residential Large Loan product 80% LTV fixed for five years. The 80% LTV two-year product has a 2.7% discount from SVR, meaning a current rate of 6.09%.
Self-build maximum loan enhancements
Meanwhile, the maximum loan on Saffron’s self-build large loan products has increased to £4m, available at the following rates:
For 75% LTV - a two-year product with a 1.7% discount from SVR, meaning a current rate of 7.09% (Self Build Large Loan), and for 80% LTV - a two-year product with a 1.5% discount from SVR, meaning a current rate of 7.27%.
Rates reductions
Saffron has also reduced rates across its range, including on residential, self-employed, contractor and BTL products. Residential products have seen reductions of up to 0.7%, with five-year fixed rates at 80% LTV starting at 5.77%. The full list of new rates can be found below:
For Owner Occupied
80% LTV two-year product with a 2.7% discount from SVR, meaning a current rate of 6.09%
80% LTV two-year fixed rate of 6.17%
80% LTV five-year fixed rate of 5.67%
90% LTV two-year fixed rate of 6.27%
90% LTV five-year fixed rate of 5.77%
For Retrofit, there is an 80% LTV two-year fixed rate of 617%. Self-employed borrowers can now access an 80% LTV two-year fixed rate of 6.47% and an 80% LTV five-year fixed rate of 6.27%.
For contractors
80% LTV two-year fixed rate of 6.37%
80% LTV five-year fixed rate of 5.87%
90% LTV two-year fixed rate of 6.47%
90% LTV five-year fixed rate of 5.97%
LTV changes
Elsewhere, Saffron has increased the LTV on products in its retirement interest-only mortgage range and introduced a new LTV band of 90% on its first-time buyer range. The enhanced LTV on their retirement interest-only mortgages is now 60%. The following rates apply:
60% LTV with a 3% discount from SVR, meaning a current rate of 5.79% (RIO POA)
60% LTV with a 2.7% discount from SVR, meaning a current rate of 6.09% (RIO)
90% LTV five-year fixed rate of 6.37% (FTB)
Tony Hall, Head of Business Development at Saffron for Intermediaries, comments: “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 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.”
