Saffron Building Society has announced two new three- and five-year fixed term mortgages aimed at the first-time buyer market.
The three-year fixed rate product is available at up to 95 per cent LTV on a rate of 3.07 per cent. It has an ERC of 3 per cent for three years, no arrangement fee, and gifted deposits are accepted.
The maximum loan is £500,000, although this can be upped to £1m if the would-borrower is purchasing a property within the M25, is willing to move to 90 per cent LTV, subject to an underwriter assessment.
The five-year fixed rate product has similar attributes, coming in at 3.37 per cent on up to 95 per cent LTV, with an ERC of 3 per cent for five years, with gift deposits welcome and the same stipulations for a £1m purchase as detailed above.
Saffron Building Society head of mortgage sales Anita Arch says: “We believe our new reduced rate mortgage products are just the boost FTBs need. Home ownership in the current generation is much lower than the generation before – we want to help more people to take that initial step and get on to the property ladder.”