Affordability based on rental history, not income multiples
Rate of 6.49% fixed until 29/02/16
Saffron Building Society, the largest building society serving the East of England, has today re-launched its popular 95% mortgage for first time buyers who have been renting for 12 months or more.
The new mortgage has a rate of 6.49% AER, which is fixed until 29 February 2016. 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.
Jon Hall, CEO of Saffron Building Society: “We recognise the challenges of getting on the property ladder and the difficulties in saving for a deposit in the current climate. 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.”
- Key benefits of the new FTB product:
- Affordability considers rental history not just income multiples
- Members can purchase any open market property, whereas other products restrict to New Buy builds only
- Saffron Building Society does not require a guarantor for the mortgage
- Saffron Building Society does not require the applicant to hold accounts or products with the society
The repayment only 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.
By distributing the mortgage both direct and via intermediaries, it is Saffron’s hope that more people in our region will be able to take their first steps on to the property ladder. The mortgage is available with just a £195 arrangement fee.