Saffron Building Society has expanded its contractor mortgage range by reducing the minimum deposit to 10% for brokers. The 10% deposit option has been offered as a discounted rate from the standard variable rate for 5 years, with an initial rate of 4.09%.
The 5 year discounted products are also available to individuals with larger deposits. Contractors can benefit from an initial rate of 3.29% if a 30% deposit is available, 3.79% for those with 20% to put down, and 3.89% requires a 15% commitment from the borrower. The arrangement fee for all the products in the range is £1,250, with the main benefit being that all of the products carry no early repayment charges at any time for part or full settlement of the mortgage. This last feature will no doubt appeal to contractors with the ability to accrue savings quickly.
Anita Arch, Saffron for Intermediaries Senior Business Development Manager explained: “This enhanced mortgage now enables contractors to borrow up to 90% LTV and benefit from a 5 year discount.
“There are no early repayment charges and all applications are manually underwritten and not subject to credit scoring.”
Contractors will need to have a minimum of 6 months left on their current contract and a minimum contract history of 6 months to qualify for the 20% deposit option. For the new 10% deposit product, contractors will need to have a minimum contracting history of 2 years. The building society calculates a contractor’s income by multiplying daily contract rate by 5 days, and then 48 weeks (subject to full underwriting of income).
These products are available via select brokers only, and not via the branch network for direct applications.
Article By:Taj Kang, Business Development Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
Tel: 01489 555 080