The new mortgage has a rate of 6.49% AER fixed until 29 February 2016. Saffron Building Society will review applicants using the combined assessment of the prospective buyer’s rental payment history, their disposable income and ability to afford the mortgage, along with the standard credit history checks.
Jon Hall, CEO of Saffron, said: “We recognise the challenges of getting on the property ladder and the difficulties in saving for a deposit in the current climate. At a time when rents are at an all-time high and mortgages are difficult to secure, we want to make it as easy as possible for first-time buyers.
“We know that there are many potential first-time borrowers who are capable of supporting a mortgage as they have been paying these amounts in rent already but are frozen out of the market by the large deposits required.
"We steer clear of the ‘computer says no’ approach adopted by too many lenders; for example looking at affordability using rental history, not just income multiples. Our manual underwriting looks at each case individually to assess the affordability of the mortgage for the applicant, making it highly suitable for first-time buyers.”
The repayment only mortgage is available direct from Saffron Building Society’s branches and by phone and via intermediaries for those in the Essex, Hertfordshire, Suffolk, Norfolk and Cambridgeshire areas.
By distributing the mortgage both direct and via intermediaries it is Saffron’s hope that more people in our region will be able to take their first steps on to the property ladder. The mortgage is available with just a £195 arrangement fee.
