Saffron launch a new 95% LTV mortgage deal.
Saffron has announced the re-launch of a 5% deposit mortgage deal.
Tesco Bank recently launched its new mortgage range, advising nothing would be on offer above 80% loan to value as it views there is little demand for such products.
It would seem that Saffron are not in agreement, choosing instead to support first time buyers who are struggling to save enough of a deposit to buy a first home.
The Saffron BS see a great need for low deposit mortgage deals and have therefore launched a 5% deposit offer for first time buyers.
The new first time buyer mortgage is available for those who have been living in rental accommodation for over a year. The lender is offering a rate of 6.49% fixed until 2016 for 95% loan to value with a fee of £195. The intention is to assess mortgage affordability using an applicant's rental history, credit check information and disposable income.
A spokesperson for Saffron commented saying there are many would-be buyers who have proved that they can pay a mortgage as they have been paying a similar amounts each month to landlords in rent. Adding that often the problem for many wanting a mortgage is not the monthly repayments but the deposit levels required.
Saffron has therefore chosen to release a low deposit mortgage deal to help this sector of the market.
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