Competitive rates & family contributions returned with interest
Saffron Building Society has launched a ‘Family Support’ mortgage giving brokers new options for first-time buyers. The new product gives access to a competitive interest rate which is fixed for five years. A customer must provide a 5% deposit and a family member holds funds in a Saffron Family Support Savings Account, for the first five years of the mortgage. The family contribution also gains interest over the fixed term period before being returned.
At a time when raising a mortgage deposit can be challenging and proving to be a difficult financial juggling act between saving and meeting living costs, many first-time buyers need some support from their families.
Saffron’s ‘Family Support’ mortgage, with a range of innovative features, can help brokers’ customers facing this situation and works as follows:
- The customer provides 5% of the purchase price by way of a deposit (which can be a gifted deposit)
- A member of their family holds another 5 % of the purchase price in a Saffron Family Support Savings Account linked to the Mortgage
- The funds are held in a Saffron Family Support Savings Account for the duration of the five year fixed term of the mortgage
- The funds cannot be accessed for the five year fixed term of the mortgage
- At the end of the five year term, the funds are returned with interest paid
- The customer gets the support they need to buy their home and a competitive interest rate during the term of the mortgage, which has a fixed rate for five years
- Saffron pays for the customers valuation and there is no arrangement fee on the mortgage – cutting down upfront costs
Rate: 2.97% to 95% LTV
Arrangement Fee: None
Early Repayment: 3% for 5 years
Loan: Min loan £30k, Max loan £500,000
Term: Min mortgage term 5 years; Max mortgage term 40 years
Anita Arch, Saffron Building Society’s Head of Mortgage Sales said: “Our Members told us that they’d like a way of supporting their families financially in the early years of home ownership but, when they found their feet, to have the money they provided returned. These funds might be needed as part of retirement planning for example. A gifted deposit is often seen as an ideal way to assist, but ‘gifted’ money is not repayable which means it is not always the ideal solution.”
Arch added: “In addition, the family member providing the support receives interest on their funds, at the end of the five year term. We see this as a great way for families to help each.
Brokers can easily submit a case via our online broker portal.
If you have any questions please speak with our Business Development Mangers, who will be happy to help:
Holly Andrews: 01799 582885
Katie Sharpe: 01799 582923
Gemma Reynolds: 01799 582925