Saffron restores 75% LTV ltd co BTL five-year fix and cuts rates
New 55% LTV BTL tiers and a 4.99% residential discount join the range as Premier Income returns with no loan-to-income limit
Saffron for Intermediaries is reintroducing its five-year fixed rate for limited company Buy-to-Let borrowers at up to 75% LTV and cutting selected residential fixed rates by 0.20 percentage points.
Available from 22 October, the changes also include additional 55% LTV Buy-to-Let tiers, a new residential discounted rate and the return of Premier Income products for higher-income borrowers.
The limited company Buy-to-Let five-year fix returns at 6.27%, with a £2,500 arrangement fee, complementing Saffron’s existing discounted-rate option at up to 75% LTV.
New five-year fixed products at up to 55% LTV include:
- Limited Company Buy-to-Let at 6.07%, with a £2,500 arrangement fee.
- Expat Buy-to-Let and Expat Limited Company Buy-to-Let, both at 6.27%, with a £2,500 arrangement fee.
- Standard Buy-to-Let at 6.17%, with a £1,999 arrangement fee.
For residential borrowers, Saffron is reducing four fixed rates by 0.20 percentage points. At 80% LTV, the two-year fix falls to 5.67% and the five-year fix to 5.77%, both with a £1,999 arrangement fee. At 90% LTV, the two-year and five-year fixes both fall to 6.07%, with a £999 arrangement fee. All four products include a free valuation.
Saffron is also launching a two-year residential discounted-rate mortgage at an initial rate of 4.99%, available up to 80% LTV with a £1,999 arrangement fee and a free valuation. The variable rate is set at three percentage points below the Society’s Standard Variable Rate for two years.
Premier Income products return with loans of up to £5m and no maximum loan-to-income cap for borrowers earning over £150,000, subject to an individual affordability assessment.
This gives brokers an option for higher-income clients whose borrowing requirements exceed standard income multiples.
The Premier Income two-year fix is priced at 6.37% and the five-year fix at 6.47%, both available up to 80% LTV with a £1,495 arrangement fee.
Tony Hall, head of sales at Saffron for Intermediaries, said: “For a landlord borrowing through a limited company, the amount of equity they need to put into a property is a significant part of the financing decision. Restoring our 75% LTV option gives brokers another route to consider for clients who want to retain more of their capital.
“The residential rate reductions and return of Premier Income also widen the options brokers can explore with us, whether their client needs a straightforward mortgage or a more individual assessment of their income.
“A client’s circumstances can span several product categories. A landlord living overseas may also want to borrow through a limited company, for example. We encourage brokers to talk to us about cases involving multiple complexities, so we can consider the circumstances together and establish how we might help.”