We asked our CEO Colin Field to share his perspective on the mortgage market and how we plan to help Brokers and their clients.
We sometimes hear that Brokers are frustrated by how long it can take to find providers who can offer an intelligently built product which is able to deal with the issues of today. At Saffron we have developed a highly refined product range which can help you to go back to your customers with good news.
A quick glance at a handful of key indicators reveals some of the difficulties faced by people looking for a property:
- first-time buyers must typically save for eight years to afford a deposit, and a typical 20% deposit in London is now more than £80,0001
- over 305,000 parents helped their children onto the housing ladder in 2016, with the value of their support averaging £17,5002.
- just under five million people are self-employed in the UK and this number continues to grow3.
Our product team looks to continually evolve and move with the times so we might offer products which reflect the changing world. If you have a few minutes I’d like to share a few examples with you.
A gifted deposit is an effective way of raising money with the help of a relative, usually a parent. You’re probably aware that this is a sum given by a family member which forms all or part of the deposit when you buy a property. Some lenders won’t touch them, but at Saffron we accept gifted deposits for all our mortgages. It’s one of the ways we have attempted to overcome the need for a larger deposit as house prices rise. In addition, we can offer a 40 year mortgage, fixed rates up to 5 years and a 95% LTV product to assist people in their move.
Freelancers, Self Employed and Contractors
For the self-employed, we accept applications from people with only one year’s trading history – even if they are first time buyers. We also have a specialist contractor mortgage, for individuals working on a short-term contract basis. We take into account the contractor’s circumstances and income structure, and review the application in conjunction with our underwriting team.
Our specialist range; Self Builders, Expats and developers
Our underwriting team will always review every application we receive and go into more depth if required when there is a borderline decision. We want to increase the chances of accepting an application, so our underwriters will ask questions and use their experience in an attempt to help out the brokers. They work closely with the product team, which has enabled us to create specialist products for:
- Developers looking to build homes and sell on to others for profitable gain
- Those looking to build their dream home.
- Landlords looking for a buy to let or expat buy to let property
In every instance, if the decision seems borderline or the application is complex, our underwriters will see if they can bring about a successful conclusion, even on our everyday mortgages.
If you want to discuss an application or find out about how we work, speak to our dedicated sales team who will be happy to help. Please visit the Broker Support section of our website for the relevant contact details.
1 Buying a home: How long does it take to save a deposit?, BBC News, Jan 2018
2 The Bank of Mum and Dad, L&G, Feb 2017
3 UK Labour Market, ONS, Dec 2017