Product Guide. February 2014

Transcription

1 Product Guide February 2014 NEW IN THIS ISSUE: Updated Product Range 2 year fixed rate option on Special Situations and Everyday Situations Mortgages Fixes starting from 3.47% for employed and self-employed borrowers Available up to 95% LTV for both first-time buyers and next-steppers Also available to LTV for buy-to-let applicants Reduced arrangement fee for landlords refurbishing property

2 Special Situations Range SELF EMPLOYED MORTGAGE 70% 7 year 7 year 4.39% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 3.89% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 3.77% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) 70% 3.47% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) For those working on a self-employed basis Available for applicants with only 1 years accounts Available to First Time Buyers Capital Repayment incentive (not applicable on fixed rates) Borrowers can repay capital at any time and reduce the mortgage rate if they move into a lower LTV band, with no additional fee LTV is always based on the original property value when the mortgage was taken out Borrowers will never be required to move up to a higher rate Minimum 12 months accounts plus a projection of future earnings 6 months personal and business bank statements Minimum age 21 Repayment only At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Special Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

3 Special Situations Range PROFESSIONAL MORTGAGE 90% 85% 10 year 10 year 10 year 4.89% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 4.39% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 3.99% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 90% 3.87% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) 85% 3.67% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) 3.47% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) For professionals requiring higher LTV loans Available to First Time Buyers Capital Repayment incentive (not applicable on fixed rates) Borrowers can repay capital at any time and reduce the mortgage rate if they move into a lower LTV band, with no additional fee LTV is always based on the original property value when the mortgage was taken out Borrowers will never be required to move up to a higher rate Available for the following professions: Bankers, Accountants, Actuaries, Solicitors (including Trainees), Barristers, Medical Doctors, Dentists, Pharmacists, Optometrists, Vets, Teachers, Professionally Qualified IFAs to level 4 and Mortgage Brokers to CeMAP or equivalent, Commercial Pilots, Chartered Surveyors, Architects Other professions considered by referral Repayment only Minimum age 21 At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Special Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

4 Special Situations Range CONTRACTOR MORTGAGE 90% 85% 10 year 10 year 10 year 4.99% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 4.49% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 3.99% (SVR %) SVR ,000 Purchase & Remortgage 0.35% None 90% 3.97% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) 85% 3.77% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) 3.57% Fixed SVR ,000 Purchase & Remortgage 0.35% (Until ) Available for individuals who are working on a short-term contract basis We recognise that contractors may struggle with standard mortgage applications however Saffron takes a more pragmatic approach; actually understanding contractors circumstances and income structure Available to First Time Buyers Capital Repayment incentive (not applicable on fixed rates) Borrowers can repay capital at any time and reduce the mortgage rate if they move into a lower LTV band, with no additional fee LTV is always based on the original property value when the mortgage was taken out Borrowers will never be required to move up to a higher rate There must be a minimum 6 month term left on the contract There must be a minimum contract history of 6 months at LTV, rising to 2 years at 90% LTV Income calculated as Daily Rate x 5 x 48 Repayment Only Minimum Age 25 Income documents required: Current and previous contract Last 6 months invoices Last 6 months bank statements showing invoice credits CV outlining previous employment history At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Special Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

5 Special Situations Range BUY TO LET LIGHT REFURBISHMENT MORTGAGE 75% maximum of the end value For the life of the loan 5.39% (SVR) N/A 2.50% 500,000 Purchase & Remortgage 0.35% None 75% maximum of the end value 4.47% Fixed SVR 2.00% 500,000 Purchase & Remortgage 0.35% (Until ) For existing landlords that wish to purchase or re-mortgage a property that requires a level of light refurbishment before renting the property There is no limit on the level of borrowing with other lenders See Everyday Situations for our standard Buy To Let Mortgage Rental Cover 125% of Pay Rate based on after works rental assessment Evidence of savings required to support 3 months mortgage payments whilst refurbishment works undertaken Work must be able to be completed within 3 months of completion and prior to letting out Additional funds released after a satisfactory re-inspection and confirmation of improved end value and rental income Product only available to homeowners Property must be let on an AST No HMO s or limited companies LTV not to exceed 75% at any stage Maximum portfolio with Saffron of 1.5m Interest only or repayment At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Special Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

6 Special Situations Range EXPAT BUY TO LET MORTGAGE 65% For the life of the loan 5.39% (SVR) N/A 2.50% 500,000 Purchase & Remortgage 0.35% None 65% 5.27% Fixed SVR 2.50% 500,000 Purchase & Remortgage 0.35% (Until ) For experienced British landlords with an existing UK mortgage, currently living outside the UK, who wish to purchase or remortgage a property There is no limit on the level of borrowing with other lenders See Everyday Situations for our standard Buy To Let Mortgage Rental Cover 125% of Pay Rate Property must be let on an AST No HMO s or limited companies The applicant must be able to demonstrate current or recent previous satisfactory mortgage history. Maximum Portfolio with Saffron of 1.5m Must have UK credit history Must hold a UK bank account and mortgage direct debits must be paid from this account Interest only or repayment We will condition the offer for nomination of a UK solicitor with a minimum of 2 partners who will act for the applicant and on whom the Society can serve notice in the event of default At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Special Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

7 Special Situations Range SELF BUILD MORTGAGE - INTEREST ONLY 65% of purchase price, 100% of the build and max Gross Development Value 75% 18 months maximum 6.39% (SVR +1.00%) The customer must refinance at end of the product term 2.00% 500,000 Purchase & Remortgage No 0.50% None SELF BUILD MORTGAGE - REPAYMENT 65% of purchase price, 100% of the build and max Gross Development Value 75% 18 months maximum 6.39% (SVR +1.00%) SVR 2.00% 500,000 Purchase & Remortgage No 0.50% None To enable self-builders to buy a plot of land or an existing property, so they can either build a new house or refurbish an existing structure for their own occupation Funds can be drawn down in stage payments Interest only: At the end of the term the borrower must repay their mortgage by re-mortgaging away or switching to another product, if eligible Loan must be fully serviced by applicants income Planning permission & building regulations required Full break down of works together with costings and architectural drawings required NHBC certificate or approved equivalent warranty required Owner occupied only Barn conversions accepted Interest only - maximum term 18 months Repayment - maximum term 18 months for build before reverting to SVR for a maximum of 25 years At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Special Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

8 Everyday Situations Range FIRST TIME BUYER MORTGAGE 95% % Fixed SVR ,000 Purchase 0.35% None 95% 4.97% Fixed SVR ,000 Purchase 0.35% (Until ) For First Time Buyers with a minimal deposit Borrowers rental history or regular savings will be taken into consideration when assessing their ability to repay their mortgage Applicants must be a first time buyer Minimum age 21 Repayment only Max LTV 95% inclusive of fees At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Everyday Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

9 Everyday Situations Range NEXT STEP MORTGAGE 95% For the life of the loan 5.39% (SVR) N/A ,000 Purchase 0.35% None 95% 4.77% Fixed SVR ,000 Purchase 0.35% (Until ) To help next time buyers struggling to raise a deposit, take the next step up the housing ladder Minimum age 21 Minimum term 5 years, maximum term 35 years Repayment only Applicants must be able to produce their last year s mortgage statement Max LTV 95% inclusive of fees At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Everyday Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

10 Everyday Situations Range OWNER OCCUPIED/RESIDENTIAL - 3 YEAR DISCOUNT MORTGAGE 3 year 4.09% (SVR %) SVR ,000 Purchase (including First Time Buyers) & Remortgage 0.35% None 3 year 3.89% (SVR %) SVR Higher of 1.00% or ,000 Purchase (including First Time Buyers) & Remortgage 0.35% None A 3-year discount mortgage for purchase or re-mortgage with no early repayment charges Borrowers can choose which option best meets their needs Minimum age 21 Interest only or repayment Interest only to 70% max LTV OWNER OCCUPIED/RESIDENTIAL - FIXED RATE MORTGAGE 3.47% Fixed SVR ,000 Purchase (including First Time Buyers) & Remortgage 0.35% (Until ) A fixed rate mortgage for purchase or re-mortgage Minimum age 21 Interest only or repayment Interest only to 70% max LTV At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Everyday Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

11 Everyday Situations Range BUY TO LET MORTGAGE 75% 3 year 4.69% (SVR -0.70%) SVR 2.00% 500,000 Purchase & Remortgage 0.35% None 4.47% Fixed SVR 2.00% 500,000 Purchase & Remortgage 0.35% (Until ) For existing landlords to purchase or re-mortgage a property There is no limit on the level of borrowing with other lenders See Special Situations for our Buy To Let Light Refurbishment and Expat Buy To Let Mortgages Rental Cover 125% of Pay Rate Product only available to homeowners Property must be let on an AST No HMO s or limited companies Maximum portfolio with Saffron of 1.5m Interest only or repayment At any time during the life of the mortgage, the applied rate will not go below a floor of. Rates are variable unless stated. Everyday Situations mortgages are only available from select distributors. For full details about our distribution partners, please visit

12 Lending Criteria APPLICANT RESIDENTIAL BUY TO LET Minimum age 18 (or product specific) 25 Maximum age at end of term 75 (ability to fund past 65 needs to be evidenced) Maximum loan to value Product specific 75% (unless product specifies otherwise) Minimum mortgage term Maximum mortgage term 5 years 35 years Guarantors No N/A Contractors Expats No Self Build N/A Maximum number of applicants 4 Home owners N/A Only available to those who have at least 1 BTL property or own a home ACCEPTABLE INCOME RESIDENTIAL BUY TO LET Minimum income N/A N/A Gross annual income 100% of basic + guaranteed allowances (e.g. area weighting allowance, car allowance, housing allowance) N/A Regular overtime, bonus or commission 100% of guaranteed / 50% of non-guaranteed N/A Maintenance 50% (by court order child must be 13 years or under) N/A Personal / state pensions + lifetime benefits 100% N/A Maternity Leave 100% of basic salary upon return to work and must be confirmed by employer N/A Other benefits (i.e. child tax credits, housing benefit, child benefit, job seekers, etc) Additional income (such as second jobs and trust funds) Refer Refer N/A N/A Lending Criteria subject to change. All mortgages are subject to status.

13 Lending Criteria Continued LOAN RESIDENTIAL BUY TO LET Minimum loan amount 30,000 Maximum loan amount 500,000 (anything above, referred) or product specific Repayment type Repayment Repayment & Interest Only Interest calculation Daily Rental cover minimum N/A 125% Maximum portfolio with SBS N/A 1.5M Property must be let on an ast N/A 6 to 24 months Capital raising Consolidation loans Company lets N/A Refer DSS tenants permitted N/A No Student lets N/A Properties in multiple occupation N/A No Right to buy No N/A Shared ownership No N/A Lending to limited companies No No Multiple mortgages Lending Criteria subject to change. All mortgages are subject to status.

14 Lending Criteria Continued PROPERTY RESIDENTIAL BUY TO LET Minimum property value 100,000 Remaining lease at end of mortgage term 50 years High rise flats (above 6 storeys) Refer New build flats No Ex local authority flats Refer Flat above commercial Refer Freehold flats No Second homes to a maximum of LTV N/A Vendor deposits No Builder deposits No Minimum time previously owned by vendor 6 months Minimum time owned before remortgage 6 months Lend in Scotland No Lend in Northern Ireland No DOCUMENTATION REQUIRED - EMPLOYED RESIDENTIAL BUY TO LET Last 3 months payslips Latest P60 Last 3 months bank statements Statements must confirm income and expenditure DOCUMENTATION REQUIRED - SELF EMPLOYED RESIDENTIAL BUY TO LET Last 3 years audited accounts Last 3 years Accounts certificate SA302 Last 3 months personal bank statements Statements must confirm income and expenditure Last 3 months business bank statements DOCUMENTATION REQUIRED - ALL RESIDENTIAL BUY TO LET Proof of deposit Name & address identification Lending Criteria subject to change. All mortgages are subject to status.

15 Valuation Fees If the property exceeds the valuation amounts shown, please contact us for a quote. Other fees may apply please ask for details. PROPERTY VALUATION FEE* Up to 50, , , , , , , , , , , , , , , , , , , , , , , , , ,001-1,000, ,000,001-1,200, ,200,001-1,400, Payment of Intermediary Fees Saffron Building Society will pay an Intermediary fee for introduced mortgage business in line with our published terms and conditions. The minimum fee which Saffron will pay at any one time is 100 any fees due under this amount will be held until the fees payable to the intermediary exceed 100. Saffron will not pay interest on such an amount. Gross procuration fees differ by product. Saffron will pay the fee at the beginning of the month following completion of the loan. (eg. If the mortgage completes on 15 June, Saffron will pay the fee at the beginning of July). Fees will be paid by BACS. If the intermediary is not registered in its own right with the FCA, any fees due will be paid to the network to which the intermediary is registered. Saffron may vary the fee structure at any time. However, we will always notify panel intermediaries within 4 weeks of the effective date or at the time of an enquiry, whichever is sooner. 1,400,001-1,600, The fees above do not inlcude Self Build valuations. * Including VAT and non-refundable application fee of 135