Saffron Building Society has relaunched its 95% mortgage for first time buyers who have been renting for 12 months or more.

The new mortgage has a rate of 6.49% AER, which is fixed until 29 February 2016.

The mutual says it will review applicants using the combined assessment of the prospective buyer’s rental payment history, their disposable income and ability to afford the mortgage, along with the standard credit history checks.

Members can purchase any open market property and the Saffron does not require a guarantor for the mortgage or for applicants to hold accounts or products with the society.

“We recognise the challenges of getting on the property ladder and the difficulties in saving for a deposit in the current climate,” said Jon Hall, CEO of Saffron Building Society.

“At a time when rents are at an all-time high and mortgages are difficult to secure, we want to make it as easy as possible for first time buyers.

“We know that there are many potential first time borrowers who are capable of supporting a mortgage as they have been paying these amounts in rent already, but are ‘frozen out’ of the market by the large deposits required. We steer clear of the ‘computer says no’ approach adopted by too many lenders; for example looking at affordability using rental history, not just income multiples.

“Our manual underwriting looks at each case individually to assess the affordability of the mortgage for the applicant, making it highly suitable for first time buyers.”