It said its team of specialist underwriters were able to allow for ‘some flexibility’ in the lending processes, offering manually-reviewed applications on a case-by-case basis and this would support brokers who were working with clients with complex incomes.

Self-employed criteria

For self-employed clients, Saffron has clarified its criteria and affordability assessments to allow both a broker and the borrower a clearer idea of product requirements.

The standard product ranges require a minimum of three years of trading. For applicants with a rising or downward trend of income they will typically use latest figures for affordability purposes.

For applicants with fluctuating income, the mutual will typically use average figures for affordability assessment. Saffron also offers a self-employed specific product that requires one year of accounts, with projection of earnings and three months personal and business statements.

Criteria for contractors

Those on a fixed-term contract will only need to have been in contracted work for three months, there is no minimum income requirement as the application will be based on affordability, the contractor is not on a fixed term PAYE contract and are self-employed – typically earning a day rate but there are no industry restrictions.

Saffron also accepts CIS applicants for its contractor product – with a requirement to prove they have two years’ experience as a minimum (a CV will be required), a contract of employment (if available), plus six months’ bank statements and payslips. Assessment will be on the contract terms if available, or the average of the last six months’ payslips.

John Penberthy-Smith, chief commercial officer at Saffron Building Society, said: “We know that many intermediaries will be unaware of our manual underwriting process.

“We have a very dedicated team of specialists who look at each applicant individually, making it a fairer process for the client.

“With this clarification, we hope to streamline initial enquiries and demonstrate our willingness to use a ‘common sense’ approach to lending. Especially to the self-employed and contractors, who may be finding less flexibility with other lenders.”