Saffron Building Society has launched a 5-year fixed buy-to-let deal as well as owner occupier and first-time buyer products, all available for purchases and remortgages.
The 5-year fixed buy-to-let deal is 2.87% at 75% LTV, with a 2% arrangement fee and early repayment charge of 3 % for 5 years (with flexibility with overpayments).
There’s the same ERCs for first-time buyers who have two products availed at 95% LTV, 3.57% fixed until 30.11.2021 (reduced from 3.77%) and 3.87% fixed until 30.11.2023 (which was 3.97%). Both have no arrangement fees.
For owner occupiers there’s a 2.27% fixed until 30.11.2020 at 80% LTV with an ERC of 2% for two years, 2.57% fixed until 30.11.2023 to 80% LTV with an ERC of 3% for 5 years and 2.57% fixed until 30.11.2023 to 80% LTV with an ERC of 3% for 5 years. All ERCs have for these owner occupiers have flexibility with overpayments.
Dan White, managing director at White Financial Services, said: “I don’t think it’s wise, and as popular, to lend at 95% LTV to first-time buyers over a longer period of time like five years. I think it’s best for the client to review it in the short-term and look at their circumstances.
“And for buy-to-let, it isn’t the rate that drives it, it’s the rental calculation how they assess it that’s more important. It’d be interesting to see whether it’s competitive in that respect.”