Saffron Release 85% LTV Self-Employed and Contractor Mortgages

28 July 2021

- Saffron for Intermediaries has today launched two, 2-year fixed rate 85% LTV products in the Self Employed and Contractor range.
- The society maintains its commitment to the self-employed who may be concerned around the effects of the pandemic.

Saffron for Intermediaries has launched two new, 2-year fixed-rate products to their self-employed and contractor range, now offering an 85% LTV.

The building society, which has been a staunch supporter of self-employed and contractor applicants throughout the pandemic, has taken another step to return to pre-pandemic offerings with these new products available from today. Whilst offering 85% LTVs in this specialist market, the products offer a 2-year fixed rate of 4.17% for self-employed and 4.07% for the contractor, with a minimum and maximum term of 5 and 40 years consecutively. The self-employed mortgage supports those with 1-2 years of accounts, those with 3 or more years will qualify for a standard owner occupier mortgage.

The introduction of these two products forms part of the society’s ongoing strategy to support the self-employed market. Throughout the pandemic, Saffron has produced webinars and engaged with the media to ensure those who were self-employed were kept informed of changes in criteria and underwriting and didn’t assume that the effects of the recent year would necessarily have an impact on all applications.

Tony Hall, Head of Mortgage Sales at Saffron, comments: “Our commitment to those who are self-employed has always been something we are very proud of and will continue. Whilst some have had issues with other lenders rejecting applications, we have taken a common-sense approach to our lending. Our dedicated BDM team have worked solidly throughout the last year with brokers to ensure they know what they need for a successful application and what additional information can help with an application. Doing this has meant we have provided a mortgage to those who may have been rejected elsewhere. I am over the moon that we can now take another step to help with our two new 85% LTV products which are available from today.”

The self-employed were initially one of the worst-hit during the pandemic until the government added extra support during the last year. Recent reports have claimed that many larger lenders have rejected many self-employed applicants who may have taken a SEISS grant from the government. At Saffron, the focus has been on the individual situation and understanding each applicant. Tony Hall explains:

“When we say a common-sense approach to lending, we mean we take the time to look at each application on an individual basis. The individual may have taken a grant as a buffer or safety blanket but not spent it. They may have had a few months of reduced trading but bounced back or diversified and are now on course to do better than projected. To understand the individual case, we may need a bit more information than before. Still, our underwriters will have a snapshot of where they are now and where the finances are heading thanks to taking that little extra time and may be able to offer them the mortgage they so desperately want.”

Tony, alongside other colleagues, hosted a live webinar to discuss best practice for self-employed and contractor mortgage applications which is available to view on-demand here: https://www.youtube.com/watch?v=OTWbcouNK68

For more information on the two new products, head to the Saffron for Intermediaries website: www.saffronforintermediaries.co.uk.