Saffron For Intermediaries is offering mortgage prisoners the chance to remortgage before new EU rules leave more trapped in their current deal.
The dedicated broker channel of Saffron Building Society has developed its new Transitional Mortgage for borrowers with a good credit history who are unable to meet their existing lender's affordability criteria.
It will be introduced 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 deal is a five-year discounted rate charging 3.99%, after which it reverts to Saffron's standard SVR, which is currently 5.39%.
The loan is available up to 75% LTV with a £995 arrangement fee that can be added to the loan.
There is no early repayment charge and the deal is only available for remortgaging, up to a maximum of £500,000.
The deal is fully portable and after three years borrowers with a clean payment history can switch to one of Saffron's current retention deals if they wish.
Their 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% five-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."
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