Saffron cuts rates on FTB, self-employed and contractor loans

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Saffron For Intermediaries has cut rates and extended the term on some of its mortgages for first-time buyers, the self-employed and contractors.

The lender has reduced rates by 0.40 per cent on its 3.97 per cent three-year fixed first-time buyer loan, now 3.57 per cent up to 95 per cent LTV.

The new rate applies to loans between £30,000 and £500,000, though applications up to £1m inside the M25 will be considered individually up to 95 per cent LTV.

The loan has no arrangement fee and a 3 per cent early repayment charge during the fixed period.

Saffron head of mortgage sales Anita Arch says: “We’re delighted to be making these products even more competitive, by cutting rates and extending the product terms on several products.”

Saffron has cut rates by 1 per cent on its self-employed variable loan to 2.79 per cent.

The mortgage is available up to 80 per cent LTV. The lender’s standard variable rate is currently 2.6 per cent.

Borrowers can access between £30,000 and £1m. The lender has cut its arrangement fee from £1,250 to £625.

The mortgage has no ERCs and unlimited overpayments.

Saffron has also cut rates by 0.30 per cent on its fixed period self-employed mortgages up to 85 per cent LTV. Rates are now 3.67 per cent to 31 January 2021.

The loan is available between £30,000 and £500,000 and has a £999 arrangement fee.

ERCs are 3 per cent during the fixed period and overpayments of up to 10 per cent a year are allowed penalty free.

Saffron has cut rates on its five-year variable contractor mortgages to 80 per cent LTV from 3.79 per cent to 2.79 per cent.