Saffron for Intermediaries has announced a significant revamp across much of its mortgage range, including enhanced Professional Income Boost criteria with a new maximum 6x LTI, a new approach to development finance with increases to key loan parameters, and several criteria updates across residential and buy-to-let. At the same time, Saffron is reducing rates across many categories – including for self-employed and contractor clients.
Professional Income Boost
From today, Saffron has increased the maximum loan-to-income ratio for professionals from 5.5x to 6.0x on loans up to 80% LTV. 5.5x remains in place up to 90% LTV. The maximum time since initial qualification has also been extended from five to ten years, widening eligibility to more mid-career professionals including doctors, solicitors and dentists.
All cases are now assessed as standard using straightforward evidence of competency, such as a degree certificate, graduate scheme or formal training completion. Mortgage brokers have been added to the accepted profession list, and the existing ‘management consultant’ category has been clarified to include strategy consultants too.
Development finance
Saffron has revamped its development finance proposition, with an increased maximum loan size from £3 million to £5 million, increased loan to cost from 80% to 90%, and increased loan to GDV from 65% to 70%. The product term has also been made more flexible, with options now available up to 36 months to allow for longer build periods.
A new pricing matrix has also been introduced to provide a clear and consistent framework. It uses core factors like GDV, loan to cost and experience to determine a model rate, with flexibility to adjust based on the strength of each case.
Criteria changes
Saffron has also made several enhancements across its residential and buy-to-let criteria.
Foster income is now accepted for applicants with a 12-month track record, with affordability based on the last three months’ payments.
Joint visa applicants no longer need to meet the £75,000 threshold individually, provided their combined income exceeds £100,000.
Documentation has also been simplified across several products. P60s are no longer required for standard employed income cases and self-employed limited company directors with two years of trading can submit SA302s or tax year overviews alone when borrowing up to 80% LTV, where affordability is based on salary and dividends. If affordability is based on net profit, fully audited accounts less than 18 months old will be required. Sole traders and partnerships may submit SA302s and tax year overviews only.
In addition, portfolio landlords now only need to provide a portfolio breakdown form at application rather than a full business plan (this can still be requested at underwriting discretion).
Rate reductions
Pricing across the owner occupied, self-employed and contractor ranges has also been lowered, with reductions of up to 0.30%.
Rates for 80% LTV five-year fixes now start at 4.57% for residential, 4.87% for contractor and 5.07% for self-employed.
Tony Hall (pictured), head of business development at Saffron for Intermediaries, commented: “We’ve started the year strongly with a record quarter for completions and our mortgage book is at an all-time high. As we continue to grow, we’re focused on making sure that progress reflects what brokers and their clients need – which is exactly what our ‘embracing different’ approach is about. The biggest change in this update is to our development finance proposition. With rising building costs, we’ve made it easier for developers to access the funding they need, including increasing the loan to cost to 90% and the maximum loan size to £5 million.
“Alongside development finance, we’ve made changes across our residential and buy-to-let range from extending our Professional Income Boost to 6.0x LTI, to simplifying documentation and refining criteria based on broker feedback. At Saffron, we believe great lending isn’t about one big change – it’s built brick by brick, with the right elements added over time. Combined with our revamped development finance offering, it puts us in a great position to keep growing with brokers and help even more clients access lending. And this isn’t the end – we have more changes planned for later in the year!”
