The Saffron Building Society has introduced two new reduced rate mortgages for first-time buyers.

The products are as follows:

Three-year fixed rate – first-time buyer:

• Rate: Now 3.07% fixed until 31.07.22 (was 3.27%) to 95% LTV
• ERC: 3% for 3 years
• Arrangement Fee: None
• Loan: Min loan £30k, Max loan £500,000 (Up to £1m within the M25 subject to max 90% LTV and underwriter assessment)
• Term: 40 years
• Purpose: Purchase
• Maximum Age: None Maximum
• Gifted Deposits: Accepted

Five-year fixed rate – first-time buyer:

• Rate: Now 3.37% fixed until 31.07.24 (was 3.47%) to 95% LTV
• ERC: 3% for 5 years
• Arrangement Fee: None
• Loan: Min loan £30k, Max loan £500,000 (Up to £1m within the M25 subject to max 90% LTV and underwriter assessment)
• Term: 40 years
• Purpose: Purchase
• Maximum Age: None Maximum
• Gifted Deposits: Accepted

All applications are individually assessed by an underwriter.

The mutual believes the new mortgage options will be of particular interest to first-time buyers who have a limited deposit or who have received a gifted deposit from a parent or other family member.

Anita Arch, the Saffron Building Society’s head of mortgage sales, said: “We believe our new reduced rate mortgage products are just the boost first-time buyers need.

“Home ownership in the current generation is much lower than the generation before – we want to help more people to take that initial step and get on to the property ladder.

“We are delighted to launch our two latest mortgage offerings to do just that.”