Can I add the fees to the loan?
Yes we do allow you to add fees to the loan on all of our products unless doing so will take the LTV above 95%.
How much is the Higher Lending Charge?
Although we arrange this cover we do not pass the cost of this onto the customer.
What is the maximum LTV you will lend on a residential purchase if there is a Buy To Let in the background?
Do you have any geographical restrictions as to where you will lend?
We do not lend in Scotland or Northern Ireland and will not lend in the Canary Wharf area of London. New build flats only in East Anglia, South East & London max 75% LTV.
Will you lend to non EU foreign nationals?
If they have permanent right to reside in the UK we can lend up to the maximum LTV applicable to the product. All others are subject to review based on their Visa, personal and work circumstances and will be restricted to a maximum 80% LTV.
Do you credit score?
No, but we carry out a credit check which forms part of our overall assessment of a case.
What credit reference agency do you use?
We use Equifax and Experian.
How can I check if the solicitor’s practice is acceptable?
We deem solicitors to be acceptable as long as the practice has a minimum of two partners. Firm must be registered with the Law Society / Council Licenced Conveyancers with 2 or more partners/SRA Approved Managers and hold professional Indemnity Insurance of at least £2M (£3M for Ltd Companies or LLP)
How do you calculate self-employed income?
Sole Trader: Net Profit
Partnership: Share of Net profit and/or Salary
Limited Company (where shareholding is >=20%): Dividends plus Drawings. Where ownership is 100% we may be prepared to use net profit rather than dividends.
3 years figures required (unless product allows for less).
Do you accept working tax credits and child tax credits?
Buy To Let
What is your rental calculation on B2L mortgages?
Re-mortgage with no additional borrowing: 125% @ pay rate
5 (or more) years Fixed Rate: 140 @ pay rate
All other contracts: 140% @ pay rate +2% (minimum 5.5%).
What’s your minimum income for Buy to Let Mortgages?
There is no minimum income requirement, although we will assess ability to fund mortgage during rental voids or other problems associated with property investment. For all applicants, at least one of the applicants needs to be in receipt of earned income and/or pension income.
How many properties do you allow a landlord to have in their portfolio with other lenders?
There is no limit with other lenders.
When/how do you pay procuration fees?
All brokers will be paid a procuration fee on all completed mortgage cases, in line with our published terms and conditions.
The minimum fee which Saffron will pay at any one time is £100. Any fees due under this amount will be held until the fees payable to the broker exceed £100. Saffron will not pay interest on such an amount.
Saffron will pay fees due at the beginning and in the middle of each month following completion of the loan. (Fees will be paid by BACS 3 day payment service.)
If the broker is not registered in its own right with the FCA, any fees due will be paid to the network to which the intermediary is registered.
Saffron may vary the fee structure at any time. However, we will always notify brokers within 4 weeks of the effective date or at the time of an enquiry, whichever is sooner.
Mortgage Credit Directive:
The below aims to give a brief overview of the changes resulting from the implementation of the EMCD.
If you require further detailed information about the EMCD, please visit the FCA website.
MORTGAGE CREDIT DIRECTIVE: General Information for Regulated Mortgages
Key Facts Illustrations
By far the biggest change being bought about by the EMCD is the replacement of the KFI with a new European Standardised Information Sheet (ESIS).
The significance of the change is recognized by the FCA through transitional provisions which allows firms to adopt the new ‘illustration’ at any time before 21 March 2019. Until then lenders can opt to issue a KFI together with additional information which will be known as a KFI+.
We will take advantage of these transitional provisions and continue to issue the familiar KFI with the additional information required by the regulator, together known as the KFI+.
Going forward the new ESIS document or KFI+ will be called a Mortgage Illustration.
From 16 March 2016 all borrowers must be in receipt of a “binding” offer to be able to compete.
As now, a binding Offer may be subject to lawful conditions surrounding its withdrawal or variation, including where there has been a material change in the circumstances related to the Offer or where false or inaccurate information has been provided.
Introduction of a Reflection Period
After 16 March 2016, in line with the requirements, we will ensure that all borrowers have a minimum of 7 days to consider any binding offer. This is known as a ‘reflection period’ which will commence on the date that we issue an offer. Our offer will be binding and therefore we cannot change the content of the offer during the reflection period. Borrowers can, if they wish, elect to waive the reflection period if they want to proceed with their application earlier.
The EMCD will differentiate, for the first time, between business buy-to-let mortgages and a new category of lending called ‘consumer buy-to-let’. Consumer buy-to-let encompasses mortgage contracts which are ‘not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower’.
Consumer buy-to-let is aimed at providing unintentional landlords with regulatory protection. For example, borrowers who rent out properties because they cannot sell them easily (they may have inherited properties or houses that cannot be easily sold).
In order to offer consumer buy-to-let mortgages, you must apply for and hold a new FCA consumer buy-to-let permission. Business buy-to-let will not be regulated by the FCA.
We WILL offer consumer buy-to-let mortgages and will require intermediaries to identify if the application is a consumer or business buy-to-let case when submitting a case on the portal.
Foreign Currency Loans
A foreign currency loan is defined as being:
Denominated in a currency other than that in which the consumer receives the income or holds the assets from which the credit is to be repaid; or
Denominated in a currency other than that of the EEA State in which the consumer is resident.
Saffron does not offer foreign currency loans