All criteria changes are immediately available to intermediaries
Saffron Building Society has made significant changes to its lending criteria – changes that were all developed through feedback from brokers.
The mutual said the criteria changes marked a significant step forward for brokers seeking support for more specialist cases in the current volatile market.
“At Saffron, we are always listening to brokers, and these changes evidence that,” commented Tony Hall (pictured), head of business development at Saffron Building Society. “We monitor the mortgage market to see how we can continue to help and lend, and the changes to our criteria that we are announcing today will open opportunities for applicants with more complex cases.
“We are proud that, through our personal review of every case, we can offer flexible solutions rather than a ‘one size fits all’ approach.”
To support construction industry scheme (CIS) workers, Saffron has reduced applicant eligibility to a minimum of three months’ CIS contracting experience and one year’s industry experience.
In a move to support the growing number of zero hour contractors, the building society has enhanced its criteria to use 100% of an applicant’s income, with only a minimum of 12 months zero hour contracting experience needed. If two applicants are both on zero hour contracts, Saffron will now consider using 75% of the second applicant’s income, provided they have a minimum of nine months of experience as a zero hour contractor.
Self-employed applicants trading for two years or more will now have access to Saffron’s full product offering. This allows for more affordable residential rates for experienced self-employed applicants, and also opens the door to Saffron’s self-build and joint borrower sole proprietor products for the first time.
The mutual will now consider modern forms of construction, including 100% cladding, provided there is masonry up to damp proof level. It has also enhanced its custom build proposition to enable more of these builds.
Saffron has no minimum income requirements for applicants with a suitable repayment vehicle and has now added more flexibility for those looking for a hybrid interest only or capital repayment solution. Applicants can now reach up to 80% LTV subject to a maximum of 60% interest only.
To reduce the amount of supporting documentation required for new applications, it has also reduced the number of bank statements needed for residential, buy-to-let, and self-employed applicants to the latest month’s personal bank statement only.
The complete details on Saffron’s updated lending criteria can be viewed online through its website.
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