Residential - Standard Underwriting income multiples

Minimum age: 18
Max age at end of mortgage term: 65
Refer to underwriter if max age exceeds 65 at end of mortgage term
Standard multiples are 3.25 times main plus 1.00 times second or 2.75 times joint income.
Where any one party earns £40.000 or more, the following enhanced multiples will be considered: 4 times main plus 1.00 times second or 3 times joint income.
We can consider income stretches if affordability can be verified, particularly on loan to values of 75% or below.
Income can include up to 100% of guaranteed overtime, commission, bonus ,allowances etc; and up to 50% of non guaranteed but regular overtime, commission, bonus etc.
For self employed, we would normally take the average of the last 3 years' net profit.
If contract worker or if a guarantor is required, please telephone to discuss.
Financial Commitments
Commitments with over 1 year to run - annual payment is deducted from salary before multiples are applied.
Commitments with 6-12 months to run - remaining total payment due is deducted from salary before multiples are applied.
Commitments with less than 6 months to run are usually ignored.
Credit cards: we will deduct 3% of the balance X 12 from income before applying the multiple.
Repayment method can be either Capital and Interest or Interest Only. If Interest Only, full details of proposed repayment strategy must be provided

Residential - First time buyers and shared ownership

Minimum age: 21 (or a joint age of 40 if two applicants)
Maximum age at end of mortgage term: 65
Enhanced multiples are considered which are subject to an affordability check.
Employment: Main applicant employed for at least 12 months and applicant(s) must be out of any probationary period.
Sole Income Multiple: Up to 4.5 X (after deducting ongoing credit commitments) subject to affordability. If shared ownership, annual cost of shared ownership rent also to be deducted.
Joint Income multiple: Up to 4.5 X plus 1 or 3.75 X joint (after deducting ongoing credit commitments) subject to affordability.
Guarantors: Considered for small income stretches only where main borrowers are on incremental salary scales.
For shared ownership cases, the housing association lease must contain the mortgagee protection clause and applicants must be allowed to staircase to 100%. Minimum share to be purchased is 40% subject to product specification.
Income can include up to 100% of guaranteed overtime, commission, bonus ,allowances etc; and up to 50% of non guaranteed but regular overtime, commission, bonus etc.
For self employed, we would normally take the average of the last 3 years' net profit.
If contract worker or if a guarantor is required, please telephone to discuss.
Financial Commitments
Commitments with over 1 year to run - annual payment is deducted from salary before multiples are applied.
Commitments with 6-12 months to run - remaining total payment due is deducted from salary before multiples are applied.
Commitments with less than 6 months to run are usually ignored.
Credit cards: we will deduct 3% of the balance X 12 from income before applying the multiple.
Repayment method can be either Capital and Interest or Interest Only. If Interest Only, full details of proposed repayment strategy must be provided

Buy-to-let

Minimum age: 25
Maximum age at end of mortgage term: 75
Maximum 85% LTV (unless product specifies otherwise - see product guide)
Rental income must meet the product requirements (i.e. to cover 125% of mortgage interest at product pay rate unless product specifies otherwise - see product guide)
Product only available to current home owners/mortgagors or those who have at least 1 BTL property
Minimum Income: £25,000
Property must be let on a 6 or 12 month AST
No DSS tenants permitted
No company lets, student lets, multi-tenancy properties or homes in multiple occupation
Maximum portfolio with SBS £1.5m
Repayment method can be either Capital and Interest or Interest Only. If Interest Only, full details of proposed repayment strategy must be provided

Credit History

Saffron Building Society will not offer mortgages to persons with a history of any of the following within the last 3-years
Previously Bankrupt (discharged)
CCJ's in excess of 1 CCJ of a maximum of £350 - None in the last 12 months
Mortgage Arrears in excess of 3 monthly payments - None in the last 12 months
Applicant entered into Individual Voluntary Arrangement with creditors
Repossessed property

Property Types

We will consider:
Purpose built flats including ex-local authority (max 5 storeys).
Converted flats
Studio flats
Freehold (including flying freehold)
Leasehold - min term of 50 years to remain on lease at end of mortgage term
Flats above shops - refer to underwriter in first instance
The Society does NOT lend on:
Freehold flats
Properties of Prefabricated Reinforced Concrete construction
Properties with part-commercial usage or above commercial premises
Properties designated defective under The Housing Defects Act 1984