The Next Step Mortgage is a 5.99% 3-year fixed rate mortgage available up to 95% loan to value for house purchases up to £500,000. The mortgage hasa £495 arrangement fee and no early repayment charge.
Peter Izard, head of mortgages at Saffron Building Society, said: “Many second-steppers are being held back from moving up the mortgage ladder because of difficulties raising a sufficiently large deposit.
“Our Next Step mortgage not only reduces the deposit requirement to just 5% but it also offers a rate of 5.99% fixed to the end of August 2016 with no early redemption charges.
“This product should help unblock the log-jam building in the market and enable more people to make their next move.”
The Next Step Mortgage is being marketed via a panel of distributors which includes 3mc, AToM, Brightstar, Complete FS, L&G Network and Platinum Options.
Dale Jannels, managing director of AToM, said: “This product offers a very practical solution to that problem and I particularly like features such as no early repayment charges.”
