Saffron provides clarity for self-employed and contractor mortgage products
02 December 2020
As the industry tightens its criteria for self-employed and contractors, Saffron Building Society has today (2nd December) clarified its criteria for the self-employed and contractor products available exclusively to intermediaries - reaffirming their position as a specialist lender.
Saffron has a team of specialist underwriters to allow for some flexibility in the lending process, offering manually reviewed applications on a case-by-case basis. Adding flexibility allows for the Society to take a unique approach to assessing affordability, especially for those who are self-employed or working as a contractor.
Self-employed: Saffron have today added clarity to its criteria and affordability assessments, to allow both a broker and the borrower a clearer idea of product requirements. The standard product ranges require a minimum of 3 years of trading. For applicants with a rising or downward trend of income they will typically use latest figures for affordability purposes. For applicants with fluctuating income, the mutual will typically use average figures for affordability assessment. Saffron also offer a self-employed specific product that requires 1 year of accounts, with projection of earnings and 3 months personal and business statements.
Contractors: Saffron have also clarified the application requirements for applicants who are on a fixed term contract. A contractor will only need to have been in contracted work for 3 months, there is no minimum income requirement as the application will be based on affordability, the contractor is not on a fixed term PAYE contract and are self-employed – typically earning a day rate but there are no industry restrictions. Saffron also accepts CIS applicants for its contractor product - with a requirement to prove they have 2 years’ experience as a minimum (a CV will be required), a contract of employment (if available), plus 6 months bank statements and payslips. Assessment will be on the contract terms if available, or the average of the last 6 months payslips.
John Penberthy-Smith, chief commercial officer at Saffron Building Society, comments: “We know that many intermediaries will be unaware of our manual underwriting process. We have a very dedicated team of specialists who look at each applicant individually, making it a fairer process for the client. With this clarification, we hope to streamline initial enquiries and demonstrate our willingness to use a “common sense” approach to lending. Especially to the self-employed and contractors, who may be finding less flexibility with other lenders.”
All the self-employed and contractor products join the ExPat BTL mortgage to enjoy extended product terms from today, as a wider shake up of exclusive intermediary products. The Retirement Interest Only mortgage has been reviewed and will offer a new lower rate for applications taking effect from 2nd December 2020.
Details of these product updates, and the full range of products are available to view on the Saffron for Intermediaries website www.saffronforintermediaries.co.uk. On the website are a range of webinar recordings which feature discussions with the SFI team regarding ExPat BTL, JBSP, and criteria questions submitted, free to view now.
