Saffron For Intermediaries, the dedicated broker channel of Saffron Building Society, has launched a 1.95% 3-year discount mortgage with no arrangement fee, which is designed to appeal to borrowers wanting to remortgage.
The mortgage deal has the following features:
• Rate: 1.95% 3-year discount (the rate then reverts to Saffron’s standard SVR, which is currently 5.39%)
• Max LTV: 60%
• Arrangement Fee: None
• Early Repayment Charge: 3% of the outstanding balance, during the discount period
• Purpose: remortgaging or house purchase
• Max loan size: £1 million
• Overpayments: up to 10% per year allowed
Saffron is also offering the same deal at higher LTVs and rates: 2.29% to 70% LTV; 2.39% to 80% LTV; and 3.29% to 90% LTV.
Anita Arch, Head of Mortgage Sales, said: “This sub-2% discount deal with no arrangement fee is ideally suited to borrowers wanting to remortgage. The remortgage market has remained subdued for some time and this deal gives homeowners an easy way to switch to an extremely competitive rate with very low up-front costs.”
Data published by the CML confirms that in February this year remortgage lending decreased month-on-month with 21,500 loans advanced – down 16% on January and 14% down on February 2014. The value of those loans (£3.3 billion) also decreased month-on-month by 20% and was down 11% year-on-year compared to February 2014.
Saffron does not use credit scoring; it’s their skilled underwriters who individually assess each mortgage application that makes the difference. Brokers can find further information about this mortgage and Saffron’s other products and services by visiting: www.saffronforintermediaries.co.uk