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Saffron Building Society

Mortgage Type

Residential

Property Value (min)

£100,000

Advance (min)

£30,000

Advance (max)

£1,000,000 including FTB anything above is referred.
£500,000 up to 95% LTV
95% LTV New Build houses accepted.
Max Loan above £500k and up to £1m is 90% The property must be within the M25
Debt consolidation up to 90% LTV

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

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

Income (min)

No minimum income for Residential.

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

Restrictions

Debt consolidation up to 80% LTV

DWP Tenants

No

Ex-Local Authority Properties

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

Minimum Ownership

6 months minimum ownership before remortgage

Permanent rights to reside and remain

Must have indefinite leave to remain, no visa applicants considered

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

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.
Must be settled. 1-12 months - £250 total. 13 – 24 months - £500 total.
Do not consider arrangement to pay
DMP - satisfied for at least 3 years, up to 80% LTV

Valuation Fees

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

Maximum number of applicants

4

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

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 - Only acceptable in (non-bridging) owner-occupier purchase/refinance applications if there is an excess of £250,000 unsecured equity in the property at the point Saffron make an Offer to lend max LTV 70% including fees after £250k equity - 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.

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

Employment

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

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.

Self Employed

Last 3 years audited accounts and they work off net profit, whether LTD Co or Sole Trader. Self Employed product specifically can have 1 year accepted.

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.

Umbrella companies can be considered on Contractor range/criteria.

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