Saffron launches transitional mortgage
The mutual encouraged brokers to contact clients who might benefit before the European Mortgage Credit Directive brings an end to this opportunity in March 2016.
The transitional mortgage, developed for borrowers with a good credit history but who are unable to meet their existing lenders’ affordability criteria, is available at 3.99% for five years after which it reverts to standard variable rate.
Loans are available up to £500,000 with a loan-to-value of 75%. The deal also includes a £995 arrangement fee which can be added to the loan.
After three years, borrowers with a clean payment history can switch to one of Saffron’s current retention deals if they want to. And the existing mortgage must have been held for three years with no additional borrowing or second charges during this period.
Anita Arch, head of mortgage sales, said: “The plight of mortgage prisoners locked into existing deals because of the Mortgage Market Review affordability rules has been well documented.
“Saffron is therefore delighted to be able to offer a helping hand before the new European Mortgage Credit Directive comes into force next year.
“We believe this deal will be welcomed by borrowers who thought they had no way out of their existing mortgage and we’re expecting significant interest from brokers.”