Saffron launches ‘freedom for prisoners’ mortgage

by Aaron Strutt

May 20 2015

Saffron for Intermediaries has launched a mortgage designed to help borrowers unable to remortgage away from their existing lender.

Over the last few years many of the banks and building societies have tightened their lending policies for existing customers, leaving them unable to switch to a better rate or borrow more money.

Saffron’s new transitional mortgage will be available to borrowers providing they have a good credit history and their loan is less than £500,000.

Aaron Strutt, product manager at Trinity Financial, says: “More of the smaller building societies are looking to attract customers from the bigger banks and the Ipswich Building Society recently launched a similar deal.

“Even if you have been refused finance from your existing lender it doesn’t mean you will not be accepted by one of the other mortgage providers. We have helped a lot of clients to secure finance after they have been declined by a high street lender.”  

Saffron’s transitional mortgage has the following features:

• Rate: 3.99% 5-year discount (the rate then reverts to our standard SVR, which is currently 5.39%)

• Max LTV: 75%

• Arrangement Fee: £995 which can be added to the loan

• Early Repayment Charge: None

• Purpose: Remortgaging (debt for debt)

• Loan size: Minimum £30,000 and maximum £500,000

• Fully portable

• After 3 years, borrowers with a clean payment history can switch to one of Saffron’s current retention deals if they want to

• Existing mortgage must have been held for 3 years with no additional borrowing or second charges during this period

This deal is available under the terms of the FCA transitional rules, but the new European Mortgage Credit Directive will bring an end to this opportunity in April 2016. There is therefore only a limited window for borrowers to apply.

If you would like help to secure a mortgage, call Trinity on 020 7016 0790.