Saffron Building Society

Mortgage Type

Residential

Property Value (min)

£100,000

Advance (min)

£30,000

Advance (max)

£500,000 up to 95% LTV
£1,000,000 up to 90% LTV
£3,000,000 up to 80% LTV

£1,000,000 for FTB anything above is referred.

80% LTV New Build houses accepted.
Max Loan above £500k and up to £1m is 80% The property must be within the M25
Debt consolidation up to 80%

Term (Max)

40 years

Minimum Age

21 (or product specific)

Maximum Age

No maximum age - however, if over 75 years the ability to fund past 65 needs to be evidenced.

Family Cash Gift Deposit

Yes - they require a letter stating no repayment will be made and no interest in property. Saffron also offer a family support mortgage option - this can be up to 5% - please see product guide Grandparents, parents, siblings, children and grandchildren A maximum of 5% in the form of a builder gifted deposit or incentive scheme is allowed subject to applicants having a minimum deposit of 5% from their own resources.

Family Gift of Equity Deposit

Yes - Provided the valuation is confirmed by the valuer as being the true value and the correct level of Stamp Duty is being paid i.e on the full price Saffron also offer a family support mortgage option - this can be up to 5% - please see product guide Grandparents, parents, siblings, children and grandchildren A maximum of 5% in the form of a builder gifted deposit or incentive scheme is allowed subject to applicants having a minimum deposit of 5% from their own resources.

Income (min)

No minimum income for Residential.

100% of basic + guaranteed allowances
100% of guaranteed overtime / 50% of non-guaranteed overtime income considered.

Will use a pension pot or investment value in affordability assessment based on the mortgage term

CIS Worker scheme: - a minimum of three months’ CIS contracting experience and one year’s industry experience. The Society takes the applicant’s average income from the last three months into account.

Zero-Hour contracts: 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 providing they have a minimum of nine months of experience as a zero hour contractor

Restrictions

Debt consolidation up to 80% LTV

Let to Buy (Turning Residential into Buy to Let)

Max LTV considered on new purchase up to 80% subject to product limits.

Can consider second homes: -

• Free Valuation Fees
• Minimum age 21
• For second homes
• Affordability is solely based on personal income and no income from short term letting is used
• Maximum 90 days per year of short term letting
• No AST or contract for tenant
• Not available to properties on holiday parks or subject to occupancy restrictions
• Interest only or repayment
• Interest only to 70% max LTV and subject to an acceptable repayment strategy
• Minimum loan size £30,000
• Maximum loan size £1,000,000
• Loans over this are priced on a bespoke basis and have restricted LTV’s

DWP Tenants

No

Ex-Local Authority Properties

Can be considered at a max LTV of 70% and subject to underwriting and valuation.

Minimum Ownership

Consider applications from applicants who have remortgaged/purchased within the last 6 months.

Permanent rights to reside and remain

Must have indefinite leave to remain, no visa applicants considered

VISA's: -

Accept applications from clients holding the following Visas who have resided in the UK for a minimum of two years:
• Skilled Worker
• Health & Care Worker
• Global Talent
• Spousal
• Pre-settled Status

Maximum of 90% LTV with a minimum income of £75,000 above 75% LTV.
No minimum remaining term of current Visa.

New Builds

Saffron's definition of new build properties is defined as a property built within the last 12 months (based on the date of the completion certificate), has not been previously occupied (for converted properties - since the conversion has been undertaken), being sold/marketed by a builder or developer with a valid new build warranty from a warrantor acceptable to the society.
Saffron recognise two forms of new build properties for security purposes: max LTV:

• New Build Houses, max LTV is product specific.

• New Build Flats, only in East Anglia, South East and London. Max LTV is 75% on C&I repayment and 60% LTV on Interest only.

No Shared Ownership new build properties are acceptable.

Self Build: -
Up to 80% LTV for land purchase, 80% of build costs and up to 80% of gross development value
Outlying outline planning permission allowed – will not go to valuation until full planning permission granted
Available to first time buyers

Properties with up to 20 acres of land can be considered providing this is not used for commercial use. Saffron BS can however accept properties where the applicants are looking to purchase a hobby farm.

List of warranty providers now being accepted:
o NHBC
o LABC
o Premier Guarantee
o ICW Limited
o Buildzone
o Castle 10/Checkmate
o Buildassure
o One Guarantee
o Global Home Warranties
o Q Assure
o Protek
o Advantage HCI
o Ark Residential Insurance
o *Zurich (*historical)
o *BLP (*historical)

Consider modern forms of construction, including 100% cladding, provided there is masonry up to damp proof level.

Credit Score

Yes, Experian - Must have a credit score over 600 Unsecured credit - No more than two occurrences within the last 24 months.

Historic CCJ’s & Defaults

CCJ's/Defaults considered.
Unsettled CCJs/Defaults are allowed up the total of £100 and up to £500 at underwriter’s discretion.
Do not consider arrangement to pay
DMP - satisfied for at least 3 years, up to 80% LTV but subject to product availability

Valuation Fees

Valuation fees paid direct to lender and a processing fee of £95 at application to 3mc

Maximum number of applicants

4 (unless lending into retirement, then it's 2)

Countries

England and Wales only. Isle of Wight considered.

Access

Access to Saffron is through a selective panel of packagers, one of which is 3mc

Missed mortgage payments

No more than two occurrences within the last 24 months.

Property Type / Commercial

No HMO's or Limited Companies.

Location

Will lend in England and Wales.

Type of Credit Search conducted at AIP stage

Soft foot print

Shared Ownership

No

Right to Buy (RTB)

No

Debt Management Plan

DMP - satisfied for at least 3 years, up to 80% LTV

Help To Buy (Shared Equity)

No to help to buy.

Forces help to buy: -

Yes, can consider applications where an element of the Deposit has come from the Forces Help To Buy Scheme.

Ex-Bankrupts

Discharged 5 years ago, max LTV - 80%

IVAs

Discharged 3 years ago, max LTV - 80%

Repossessions

Considered if over 3 years ago and clean credit since with no exceptions.

Payday Loans

None in the last 12 months - refer if over 12 months ago.

Repayment Types

Capital and Repayment and Interest Only The Society 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 / capital repayment solution. Applicants can now reach up to 80% LTV subject to a maximum of 60% interest only. Saffron require written details of how the customer expects to downsize. Saffron assess the feasibility based on location, size and type of property and the expected household composition at that time. Second homes: - • Free Valuation Fees • Minimum age 21 • For second homes • Affordability is solely based on personal income and no income from short term letting is used • Maximum 90 days per year of short term letting • No AST or contract for tenant • Not available to properties on holiday parks or subject to occupancy restrictions • Interest only or repayment • Interest only to 70% max LTV and subject to an acceptable repayment strategy • Minimum loan size £30,000 • Maximum loan size £1,000,000 • Loans over this are priced on a bespoke basis and have restricted LTV’s

Lenders completion fee

Can be added to the loan - loans must not exceed a maximum of 95% LTV

Affordability

No minimum income for Residential Affordability Calculator on Saffron website 100% of basic + guaranteed allowances 100% of guaranteed overtime / 50% of non-guaranteed overtime income considered The Society 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 / capital repayment solution. Applicants can now reach up to 80% LTV subject to a maximum of 60% interest only.

Employment

Have to be outside probationary period and have been employed for a minimum of three months with as many payslips.

Applicants who are in their probationary period can be considered providing they have 2 years’ experience in a similar role.

Agency/Temp/Zero hour contracts - 2 years agency worker experience, must be the secondary income earner and maximum LTV - 80%

Bonus - percentage used, Track record and proof required - 50% (non-guaranteed) – of additional / secondary income paid in the previous tax year. 100% (guaranteed) – evidence of track record of up to 3 years required.

Overtime - percentage used, Track record and proof required See note 100% (guaranteed) – evidence of track record of up to 3 years required. 50% (non-guaranteed) – of additional / secondary income paid in the previous tax year.

Second Job - 100% of income can be used if second job has been held for a minimum of 6 months and the applicant is not working more than 60 hours per week.

Zero-Hour contracts: 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 providing they have a minimum of nine months of experience as a zero hour contractor

Self Employed

2 years self-employed applicant has been trading for two years or more can qualify for Saffron's full range of products. 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 (JBSP) products for the first time. For applicants with a minimum of 12 months trading or for those who require more flexible underwriting,

Self-employed with 100% Ownership can be considered on net profit after tax plus salary - for any other scenario, affordability assessed on salary plus dividend.
Partnerships assessed as share of net profit

Average or latest what ever is the lesser. If reasonable increase year on year over the last 3 years can take latest subject to underwriters discretion.
- 3 years income rising or downward trend – the system will now use the latest years figures
- 3 years fluctuating income – the system will use a 3 year average.
- 1 or 2 years income – the system will use the latest and must go on the self-employed product range

Add-back of voluntary pension contributions can be considered when calculating affordability.

Contractor Applicants

Specific product range for applicants who are deemed a contractor. Our policy has previously been silent on CIS workers and contractors working through an umbrella company so we have updated our policy to provide clarity to all our brokers.

CIS Workers

- A minimum of three months’ CIS contracting experience and one year’s industry experience. The Society takes the applicant’s average income from the last three months into account.
- May require 6 month’s payslips and bank statements
- A contract of employment if they have one
- Will assess via the contract terms or if no contract available we will us an average of the last 6 months payslips.

Contractors working under an umbrella company

- Must have 2 years min – CV Required as evidence
- Require 3 month’s invoice/payslips and bank statements
- Evidence of a contract of employment
- For affordability will use our day rate x days worked x 48 but factor in the deductions taken by the umbrella company.


Rental income usage for professional landlords - 50% of surplus income considered