Saffron Building Society has announced two 90% loan-to-value mortgages for the self-employed and contractors, and has loosened its lending policy as the country emerges from the pandemic.

The mutual has a 90% LTV mortgage for self-employed, on a three-year discounted rate of 4.29% and a contractor equivalent with a 4.19% discounted rate, for three years also.

The firm had previously offered special circumstance mortgages for the self-employed and contractors, considering one to two years of accounts instead of the three-year requirement on its standard products. Also, self-employed products had been limited to 80-85% LTV.

The business also says that it has “undertaken its largest policy update in recent history”.

It now says for businesses that started trading before the 2020/1 tax year, the underwriting team may be able to discount the pandemic year from an application from the affordability assessment.

The mutual will host a free one-hour webinar for brokers to answer questions and explain its changes in detail on Wednesday 13 October at 11am. Details are on its website.

Saffron Building Society head of mortgage sales Tony Hall says: “It has always been our aim to re-enter the 90%, self-employed and contractor market, and I am delighted that we have been able to do this before the end of 2021.

“The most exciting update for us to bring, for brokers and their clients, is the change in policy around affordability.

“We know, with experience, that self-employed applicants have had a tough year, to no fault of their own.

“We know that support for the self-employed was tough to come by. But we are also aware that businesses have been resilient, have diversified to keep afloat and are now back trading the same, with most actually stronger than before the pandemic.

Hall adds: “It seems so unfair that a year of atypical accounts can hamper those hardworking people from getting a mortgage. From today, Saffron’s underwriting team can potentially discount the last year from the affordability assessment within policy.

“I must stress; this will not be everyone. However, if the company had a strong year of accounts before the pandemic year and is trading well now, their dreams of getting a mortgage may not be shattered.

“If any broker has had a case rejected recently, by any lender, or have recently discussed a case with a client, I would encourage them to have a chat with our team, as they may find that they qualify.