Saffron offers new four-year stepped discount mortgage

Saffron for Intermediaries, the brokerage arm of Saffron Building Society, has introduced a new product.

The four-year stepped discount mortgage is offered at discount rates for loan-to-value of up to 90 per cent. Loans up to 80 per cent are available for purchase or remortgage on an interest-only basis. The 90 per cent LTV offer is only available on a repayment basis. The mortgages are fully portable.

   80% LTV                                                                                  90% LTV

Year 1: 2.09% (SVR-3.3%)                                      Year 1: 2.39% (SVR-3.0%)

Year 2: 3.09% (SVR-2.3%)                                      Year 2: 3.39% (SVR-2.0%)

Year 3: 4.09% (SVR-1.3%)                                      Year 3: 4.39% (SVR-1.0%)

Year 4: 4.79% (SVR-0.6%)                                      Year 4: 4.99% (SVR-0.4%)

(SVR: 5.39%)

The loan size is in the range from £30,000 to £1 million and arrangement fee stands at £995. There is an early repayment charge of 3 per cent throughout the period of discount.

“The 90% LTV mortgage is an ideal mortgage for either first-time buyers or next steppers who have only a 10% deposit. Whatever the purpose, the stepped discount ensures that repayments are kept to a minimum in the early years,” Anita Arch, senior business development manager at Saffron for Intermediaries, said.