Saffron Building Society has recently implemented significant changes in its mortgage rates and loan offerings, including its offerings for first-time buyers, self-employed individuals, and those eyeing larger residential or self-build projects.
For Self-Builders Needing Larger Loans
One of the most notable changes in Saffron’s revamp is the increase in the maximum loan size for its self-build large loan products. Previously capped at £3m, the new ceiling has been raised to £4m. This development is particularly exciting for individuals who wish to construct their own homes and need substantial financial backing to bring their unique visions to life.
In practical terms, this increase could make a substantial difference, potentially covering higher construction costs or allowing for more ambitious projects, ultimately providing self-builders a wider range of possibilities when it comes to creating their dream homes.
Saffron also introduced a brand-new product category known as the residential large loan. This initiative caters to borrowers requiring loans up to a whopping £5m, with a loan-to-value ratio (LTV) of up to 80%. What stands out here is Saffron’s guarantee of a stable interest rate at the sourcing point. This is a deviation from the norm where interest rates for larger loans are typically customized and can be somewhat unpredictable.
Such certainty in the interest rate is a boon for potential borrowers, as it aids in long-term financial planning and ensures there are no surprises down the line.
A Closer Look at the New Rates
Prospective borrowers will be pleased with the more attractive rates Saffron now offers. For instance, under the new terms, a five-year fixed rate loan starts at 5.67% for up to 80% LTV. There’s also a two-year discounted product at 6.09%, a substantial 2.7% dip from the standard variable rate (SVR).
Moreover, specific to the self-build large loan category, there’s an offering at 7.09% for a 75% LTV two-year product, which is a 1.7% discount from the SVR. An alternative 80% LTV two-year option is available at 7.27%.
These adjusted rates signify considerable savings over the loan period, potentially translating into thousands of pounds that homeowners can allocate elsewhere, enhancing their financial flexibility.
Across-the-Board Reductions
They’ve also implemented rate reductions across various products, including residential, self-employed, contractor, and buy-to-let categories. For instance, residential products saw rate cuts of up to 0.70%, with two-year fixes starting from 6.17%.
For Retirees and First-Time Buyers
Expanding its inclusivity, Saffron has also revised its retirement interest-only mortgage range, now allowing for a maximum of 60% LTV. This adjustment provides a more accessible pathway for retirees to manage their property investments.
First-time buyers haven’t been overlooked either. Saffron introduced a new 90% LTV band, coupled with a five-year fixed rate pegged at 6.37%. This move is particularly encouraging for new entrants to the property market, often daunted by the high initial financial outlay required.
Tony Hall, the head of business development at Saffron for Intermediaries, expressed enthusiasm about these new developments, emphasizing the organization’s dedication to understanding and addressing broker and client needs. The challenge of placing larger loans has been recognized, and Saffron’s response has been to not only increase loan sizes but also to continuously refine their offerings, as evidenced by the enhancements made to their self-employed product range earlier in September.
Hall reaffirmed Saffron’s dedication to supporting borrowers who might not meet traditional lending criteria, underscoring their mission to assist as many people as possible in realising their homeownership dreams.