The ‘rent to buy’ product is a three-year fix that comes with a £195 fee and is available to first-time buyers who have been renting for 12 months or more.
It uses the applicant’s rental payment history as evidence of their ability to afford an equivalent monthly mortgage payment.
The deal is available both direct and via a select number of intermediaries, including John Charcol, Brightstar, Mortgage Talk and Complete.
John Eastgate, sales and marketing director at Saffron, says: “We reduced the rate following a general reduction in rates in the mainstream market. We’re keen to ensure that we continue to help first-time buyers take their first steps on to the property ladder.”