Saffron Building Society
Property Value (min)
£500,000 up to 95% LTV
£500,000 up to 90% LTV
£1,000,000 including 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 Age21 (or product specific)
Maximum AgeNo maximum age - however, if over 75 years the ability to fund past 65 needs to be evidenced.
Family Cash Gift DepositYes - 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 DepositYes - 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.
RestrictionsDebt 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
Ex-Local Authority PropertiesCan be considered at a max LTV of 70% and subject to underwriting and valuation.
Minimum OwnershipConsider applications from applicants who have remortgaged/purchased within the last 6 months.
Permanent rights to reside and remainMust have indefinite leave to remain, no visa applicants considered
Accept skilled Worker, Health & Care Worker and Global talent Visas subject to:
• Maximum LTV of 75%
• Remaining term of visa exceeds fixed term period
New BuildsSaffron'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 Premier Guarantee
o ICW Limited
o Castle 10/Checkmate
o One Guarantee
o Global Home Warranties
o Q Assure
o Advantage HCI
o Ark Residential Insurance
o *Zurich (*historical)
o *BLP (*historical)
Credit ScoreYes, Experian - Must have a credit score over 600 Unsecured credit - No more than two occurrences within the last 24 months.
Historic CCJ’s & DefaultsCCJ'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 FeesValuation fees paid direct to lender and a processing fee of £95 at application to 3mc
Maximum number of applicants4 (unless lending into retirement, then it's 2)
CountriesEngland and Wales only. Isle of Wight considered.
AccessAccess to Saffron is through a selective panel of packagers, one of which is 3mc
Missed mortgage paymentsNo more than two occurrences within the last 24 months.
Property Type / CommercialNo HMO's or Limited Companies.
LocationWill lend in England and Wales.
Type of Credit Search conducted at AIP stageSoft foot print
Right to Buy (RTB)No
Debt Management PlanDMP - 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-BankruptsDischarged 5 years ago, max LTV - 80%
IVAsDischarged 3 years ago, max LTV - 80%
RepossessionsConsidered if over 3 years ago and clean credit since with no exceptions.
Payday LoansNone in the last 12 months - refer if over 12 months ago.
Repayment TypesCapital 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. 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 feeCan be added to the loan - loans must not exceed a maximum of 95% LTV
AffordabilityNo 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
EmploymentHave 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.
Self EmployedFor businesses who started trading prior to the 2020/21 tax year, we may be able to discount this pandemic year from your affordability assessment
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.
- 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
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.
- Must have 2 years min – CV Required as evidence
- 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