"From today, Saffron’s underwriting team can potentially discount the last year from the affordability assessment within policy."
The mutual had previously offered special circumstance mortgages for self-employed and contractors, considering 1-2 years of accounts instead of the three-year requirement on their standard products.
Until now, self-employed products had been limited to 80-85% LTV, but Saffron has today announced a new 90% LTV mortgage for self-employed applicants on a three-year discounted rate of 4.29% and a contractor equivalent with a 4.19% discounted rate.
For businesses that started trading before the 2020/1 tax year, Saffron's underwriting team may be able to discount the pandemic year from an application from the affordability assessment.
Tony Hall, head of mortgage sales, commented: “It has always been our aim to re-enter the 90%, self-employed and contractor market, and I am delighted that we have been able to do this before the end of 2021.
"The most exciting update for us to bring, for brokers and their clients, is the change in policy around affordability. We know, with experience, that self-employed applicants have had a tough year, to no fault of their own. We know that support for the self-employed was tough to come by. But we are also aware that businesses have been resilient, have diversified to keep afloat and are now back trading the same, with most actually stronger than before the pandemic. It seems so unfair that a year of atypical accounts can hamper those hardworking people from getting a mortgage.
"From today, Saffron’s underwriting team can potentially discount the last year from the affordability assessment within policy. I must stress; this will not be everyone. However, if the company had a strong year of accounts before the pandemic year and is trading well now, their dreams of getting a mortgage may not be shattered. If any broker has had a case rejected recently, by any lender, or have recently discussed a case with a client, I would encourage them to have a chat with our team, as they may find that they qualify.”
