Saffron lets rent history count
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Saffron Building Society has launched a 95% LTV mortgage for first-time buyers who have been renting for a year or more.
The Rent-to-Buy mortgage uses the prospective buyer’s rental payment history as evidence of their ability to afford an equivalent monthly mortgage payment and will combine this assessment with standard credit history checks.
The product has a rate of 6.49% and is fixed until April 30 2015. It is available direct and via broker John Charcol.
The deal comes with a £195 fee but until July 31 Saffron will waive this for borrowers living in its branch catchment areas who apply directly.
Ray Boulger, senior technical manager at John Charcol, says the affordability calculation for this product will be a breath of fresh air to first-time buyers who have been rejected by the ’computer says no’ approach adopted by other lenders.
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