Saffron Building Society is announcing further support for self-employed and contractor mortgage applicants, with two 90% LTV mortgages and a policy update designed to provide additional support for self-employed people.
Saffron has, in recent months, dedicated continued support to those who are self-employed or working on any short-term contract work in any sector. The mutual had previously offered special circumstance mortgages for the self-employed and contractor, considering 1-2 years of accounts instead of the three-year requirement on their standard products.
Until now, self-employed products had been limited to 80-85% LTV, but Saffron has today announced a new, 90% LTV mortgage for self-employed, on a three-year discounted rate of 4.29% and a contractor equivalent with a 4.19% discounted rate, for three years also.
Also, from today, Saffron has made a policy change that could be a lifeline of those who are self-employed and looking for a mortgage. For businesses that started trading before the 2020/1 tax year, the underwriting team may be able to discount the pandemic year from an application from the affordability assessment.
Tony Hall, Head of Mortgage Sales, explains: “It has always been our aim to reenter the 90%, self-employed and contractor market, and I am delighted that we have been able to do this before the end of 2021. The most exciting update for us to bring, for brokers and their clients, is the change in policy around affordability. We know, with experience, that self-employed applicants have had a tough year, to no fault of their own. We know that support for the self-employed was tough to come by. But we are also aware that businesses have been resilient, have diversified to keep afloat and are now back trading the same, with most actually stronger than before the pandemic. It seems so unfair that a year of atypical accounts can hamper those hardworking people from getting a mortgage. From today, Saffron’s underwriting team can potentially discount the last year from the affordability assessment within policy. I must stress; this will not be everyone. However, if the company had a strong year of accounts before the pandemic year and is trading well now, their dreams of getting a mortgage may not be shattered. If any broker has had a case rejected recently, by any lender, or have recently discussed a case with a client, I would encourage them to have a chat with our team, as they may find that they qualify.”
The self-employed policy change is part of a more comprehensive update from the society. All policy changes will be available to view on the website and updates sent to brokers in due course. Saffron for Intermediaries have dedicated their next live, interactive webinar in the SFI Live series to presenting and answering your questions on the policy changes. The webinar is LIVE on Wednesday 13th October at 11am and is free to join. You can register HERE.