Saffron For Intermediaries is offering mortgage prisoners the chance to remortgage under the terms of the FCA transitional rules, before the new European Mortgage Credit Directive (MCD) brings an end to this opportunity in March 2016.

The transitional mortgage has been developed for borrowers with a good credit history but who are unable to meet their existing lenders’ affordability criteria.

The 3.99% five-year discount deal is available up to 75% LTV and has a £995 arrangement fee, which can be added to the loan.

It is available for remortgaging only and has no Early Repayment Charge. The minimum loan size is £30,000 and maximum £500,000.

After three years, borrowers with a clean payment history can switch to one of Saffron’s current retention deals if they want to.

The existing mortgage must have been held for three years with no additional borrowing or second charges during this period.

Anita Arch, head of mortgage sales, said: “The plight of mortgage prisoners locked into existing deals because of the MMR affordability rules has been well documented.

“Saffron is therefore delighted to be able to offer a helping hand before the new European Mortgage Credit Directive comes into force next year.  Borrowers can remortgage onto an attractive 3.99% 5-year discount which has no early repayment charges and an arrangement fee of just £995 which can be added to the loan.

“We believe this deal will be welcomed by borrowers who thought they had no way out of their existing mortgage and we’re expecting significant interest from brokers.”