Saffron for Intermediaries announces wide-ranging improvements to proposition
Saffron for Intermediaries has today announced a significant revamp across much of its range as part of its ‘embracing different’ broker promise. The changes include enhanced Professional Income Boost criteria with a new maximum 6.0x 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. The acceptance of Management Consultants, Investment Bankers and Mortgage Brokers remains unique in the Professional LTI market.
Development Finance
Saffron has totally revamped its Development Finance proposition to make it even more appealing. Products are now fully accessible through Saffron’s broker portal with key changes including: 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. The new approach builds on Saffron’s long-standing expertise in Development Finance and signals its ambition to partner with even more brokers in this space.
Criteria Changes
Saffron has also made several enhancements across its residential and buy-to-let criteria, including:
- Foster income 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 £75k threshold individually, provided their combined income exceeds £100k.
Documentation has been simplified across several products:
- P60s are no longer required for standard employed income cases.
- 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.
- 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 5 Year Fixes now start at:
- 4.57% for Owner Occupied
- 4.87% for Contractor
- 5.07% for Self Employed