The Society’s Transitional Mortgage has been developed for borrowers with a good credit history but who are unable to meet their existing lenders’ affordability criteria.
The 5-year discount mortgage has a rate of 3.99% up to 75% LTV (the rate then reverts to Saffron’s standard SVR, which is currently 5.39%).
After 3 years, borrowers with a clean payment history can switch to one of Saffron’s current retention deals.
Anita Arch, Head of Mortgage Sales, said:
“The plight of mortgage prisoners locked into existing deals because of the MMR 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. Borrowers can remortgage onto an attractive 3.99% 5-year discount which has no early repayment charges and an arrangement fee of just £995 which can be added to the loan.
“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.”