The changes aim to provide more flexible and supportive mortgage options for borrowers
Saffron for Intermediaries has announced rate reductions across a range of products to provide borrowers with more options.
The reductions affect owner-occupied products, expat buy-to-let products, and green residential products. The new rates include an 85% loan-to-value (LTV) band for owner-occupied products, such as a two-year fixed rate at 5.37% and a five-year fixed rate at 5.47%, both with a £999 arrangement fee.
In addition, the 80% LTV two-year fixed rate for owner-occupied products has been reduced from 5.67% to 5.27%, and the five-year fixed rate for large loans has decreased from 5.37% to 4.77%, with a £1,495 arrangement fee.
For expat BTL products, the 75% LTV five-year fixed rate has been lowered from 5.87% to 5.67%, and the variable rate product is now at SVR -2.8%, both with respective arrangement fees of £2,500 and £1,995. The green residential product’s 80% LTV two-year fixed rate has been cut from 5.67% to 5.27%, with a £999 arrangement fee.
“In the aftermath of the election uncertainty, and ahead of a potential base rate reduction, we are delighted to be able to announce reduced rates across a range of our products,” said Tony Hall (pictured left), head of business development at Saffron for Intermediaries. “We are increasingly aware of the more complex circumstances of today’s borrowers, and that the approach to mortgages must reflect this.”
In a separate announcement, fintech mortgage lender Gen H revealed that it will now accept nieces, nephews, and friends as income boosters for mortgages.
Friends can act as boosters for mortgages up to 80% LTV, while family members, including nieces and nephews, can support up to 95% LTV.
Gen H said this expansion of eligible income boosters is designed to help borrowers increase their borrowing capacity without being limited by the booster’s age as its income booster includes a calculation which can remove the booster at age 85.
The lender’s announcement follows on two consecutive weeks of rate reductions, where Gen H slashed homebuying bundle rates by up to 40 basis points and reduced five-year homebuying and standard rates up to and including 80% LTV by a further 15bps.
“We’ve seen how many people our income booster product has been able to help,” said Will Rice (pictured right), chief executive at Gen H. “This is why, when our brokers began requesting that friends be able to act as income boosters, we took note.
“I’m delighted to introduce this change, especially in light of two consecutive rate reductions, because it means we’ll be able to support even more aspiring homeowners. This important development is thanks to the attention and advocacy of our broker partners.”
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