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Saffron Building Society

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£100,000

Advance (min)

£30,000
£60,000 for HMO

Advance (max)

£1,000,000 to 80% LTV (Anything above, referred) or product specific

Term (Max)

35 years

Minimum Age

25 years

Maximum Age

No maximum age. For any loan that extends into an applicant’s retirement, or beyond the age of 75, (whichever occurs first) retirement income must be evidenced and affordability proven.

Family Cash Gift Deposit

Yes - they require a letter stating no repayment will be made and no interest in property

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

Income (min)

£25,000

Restrictions

No restrictions on number of BTL's with other lenders. No minimum requirements to have current BTL's. Must be a Home-owner.
AST term 6 – 24 months

Small HMO
• Maximum number of tenants: 4
• Experience: Existing BTL property
• First HMO mortgage: accepted

Large HMO
• Maximum number of tenants: 6
• Experience: Existing large HMO
• First HMO mortgage: not accepted

Let to Buy (Turning Residential into Buy to Let)

Yes, after 6 months ownership for Residential to Buy to Let conversion

DWP Tenants

No

Ex-Local Authority Properties

Houses - Refer
No to flats.

Minimum years remaining on leasehold property

50 years remaining on the lease at the end of the mortgage term

Minimum Ownership

Minimum time previously owned by vendor AND minimum time owned before remortgage is: -
6 months.

Permanent rights to reside and remain

Yes (unless Ex-Pat)

Ex-Patriates

Max 75 LTV. Applicants must be UK Nationals. Must have a UK Bank Account from which the mortgage payments will be paid from. No restrictions on country of residence or for the client to have a current UK mortgage.

New Builds

Max 75% LTV on C&I repayment
Max 60% LTV on Interest Only

Credit Score

Yes - required 600+ on Experian

Rental Calculation

Pound for pound remortgages – 125% of pay rate­

Limited Company – Rental cover 125% of pay rate + 2% or 5.5%, whichever is higher

Limited Company – Rental Cover on debt for debt re-mortgage cases 125% of pay rate. Fees may be added to the loan

HMO – 160% of either pay rate + 2% or 5.5%, whichever is higher. Rental Cover on debt for debt re-mortgage cases 160% of pay rate.

5 year fixed rate – New purchase or capital raising – 140% at Pay rate

Any other scenario, either pay rate plus 2% x 140% or 5.5% by 140%, whatever is the higher
Based upon Interest only BTL mortgage payment.
Rental assessment will be based on 1 single family

Historic CCJ’s & Defaults

Small amounts of adverse all satisfied will be considered

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

Maximum 4 applicants and directors. Guarantees required and individual searches will be conducted

Countries

Will lend in England and Wales

Access

Access to Saffron is available via selected packagers ONLY, select 3mc as your route.

Regulated BTLs

Yes, Regulated BTL criteria applied

Missed mortgage payments

None in last 12 - 2/3 years considered by exception

Property Type / Commercial

HMO's up to 6 bed rooms - defined as large HMO's, 4 bed HMO's are considered to be on "Small" range
Property must be let on an AST
Rental assessment is based on occupation by 1 family on an unfurnished let
For porfolio landlords the maximum LTV INCLUDING fees is 75%
Minimum energy performance rating of E on an Energy Performance Certificate (EPC)
All Shareholders in the Company must be named as Directors
Latest set of accounts to be provided (where the company has been set up for more than 18 months)
All Shareholders in the Company must be named as Directors
Guarantees required from directors
Details of all properties each Director has an ownership in (either in own name or a business name) must be provided

Location

Will lend in England and Wales.

Type of Credit Search conducted at AIP stage

Soft foot print

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Maximum 75% LTV for the overall portfolio both individually & collectively
– A minimum rental stress of 125% at pay rate both individually & collectively

Portfolio Landlord Criteria

– Up to 10 properties with Saffron to an aggregate borrowing of up to £1.5m
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – All cases
– Asset & Liability Statement – All cases
– Cashflow Statement – All cases
* Lender will not accept client versions of the documents