Saffron Building Society

Saffron Building Society is a mutual building society based in Saffron Walden, Essex, which means it is owned by its members rather than shareholders. Its business is savings and mortgages: it takes deposits from savers and lends that money out as mortgages, and anyone who opens an account or takes a mortgage with it becomes a member. It is a small society by high-street standards, with branches rather than a national network, and it specialises in lending that larger banks often decline, such as self-build, expat and interest-only mortgages.

On the savings side it offers immediate access accounts, cash ISAs, fixed rate savings accounts and bonds, children's accounts, limited access accounts and business savings accounts¹. On the mortgage side it lends on residential property, buy-to-let, self-build and expat cases, with both repayment and interest-only options². This page explains what it offers, how its accounts and charges work, how to open and operate an account, and how your money is protected.

Savings accounts and ISAs at Saffron

Saffron's savings range covers six broad types: immediate access accounts, cash ISA savings accounts, fixed rate savings accounts and bonds, children's savings accounts, limited access accounts and business savings accounts¹. The society describes applying as taking around five minutes, and it offers a free savings review in its branches for members who want to take a fresh look at where their money sits¹. If you are weighing up how savings accounts work generally, see our guide to savings accounts.

The cash ISA range includes both immediate access and fixed rate cash ISAs⁸. You can open one ISA per tax year with Saffron using your current year's ISA allowance, and you can also open more than one Saffron ISA if you are transferring existing ISA funds in⁹. Saffron is not a Flexible ISA provider: any money you withdraw and then put back in the same tax year still counts towards your annual ISA allowance, so replacing a withdrawal can use up allowance you thought you had spare¹⁰. For how ISAs work and the current allowance rules, see ISAs.

Transfers in from other providers are supported. Saffron accepts cash ISA transfers in and out, and it aims to complete an incoming transfer within 15 working days of receiving your ISA Transfer Authority form, unless you have asked it to wait until a maturity date. It backdates your ISA deposit to the date of closure noted by your previous provider, so you do not lose tax-free status while the money is in transit¹⁰. It does not accept transfers of Stocks and Shares ISAs or Inheritance ISAs¹⁰.

Saffron mortgages: residential, buy-to-let and interest-only

Saffron's mortgage lending covers the standard residential market plus several niches. There are two main repayment types: repayment mortgages, where you pay off capital and interest each month, and interest-only mortgages, where you pay only the interest and need a separate plan to repay the loan². Interest only is not available on all Saffron mortgages and is restricted to certain products, such as buy-to-let mortgages². On its discounted variable rate product, interest only is available to a maximum 70% loan to value and is subject to an acceptable repayment strategy¹¹.

Beyond standard home loans, Saffron lends to self-builders buying a plot of land to build a new house or refurbish an existing structure for their own occupation, and to expats returning to the UK or cases where direct family, meaning a spouse and own children, remains in the property³. Its first-time-buyer range is repayment only, has a minimum loan size of £30,000, accepts gifted deposits, and includes free valuations; a Joint Borrower, Sole Proprietor option allows a maximum of two owner borrowers¹². Variable rate products can be taken on an interest-only or repayment basis¹³. All mortgages are subject to underwriting and criteria, and Saffron checks income and expenditure carefully to satisfy itself the loan is affordable. Withholding information or deliberately misleading a mortgage lender is fraud and a criminal offence¹⁴.

For background on how mortgages work, how deposits and loan-to-value affect borrowing, and the different rate types, see mortgages and our guide to buying a home.

Switching your Saffron mortgage when a deal ends

Saffron writes to existing mortgage customers about three months before their deal ends to remind them of its product transfer options, which are available specifically to existing customers whose current deal is coming to an end¹⁵. A product transfer is a switch to a new Saffron deal without changing lender, and it is generally simpler than remortgaging elsewhere: Saffron does not ask for proof of income or spending unless you are making other changes at the same time, such as borrowing more money, and although it runs a credit check when you transfer products, it states this will not affect its decision¹⁵.

Two things are worth knowing. First, any new deal may have different features and overpayment limits from your current mortgage, so the terms do not carry over automatically¹⁴. Second, Saffron has waived all early repayment charges for customers remortgaging with it who are in the final month of their existing deal, provided they are within the terms and conditions of their mortgage, for example not in arrears¹⁶. Saffron also reserves the right to withdraw products at any time, so a deal you were quoted may not still be open when you come to apply¹⁵.

What happens when a fixed term savings account matures

Saffron sends a maturity communication approximately 14 days before a fixed term account ends, and you can set your maturity instructions from 14 days before the maturity date using the mobile app or online services⁵. The rates quoted in that communication are subject to change and are valid until the maturity date⁵.

If Saffron receives no instructions, the account balance plus accrued interest automatically rolls into a default product, outlined when the account was opened: a variable rate maturity easy access account for fixed term savings, and a variable rate maturity cash ISA account for fixed term ISAs¹⁷. On the Two Year Fixed Rate Loyalty ISA, for example, the account changes to the Easy Access Maturity Cash ISA, which has a different interest rate, and the account number does not change⁷. If you want to open a new fixed term account with your maturing funds but your instructions arrive after the account has ended, the new account is given a new maturity date and your options could be limited⁵.

Existing customers may also be eligible for other accounts after being a member for a certain amount of time, and Saffron says these can pay a higher rate⁵.

How Saffron's fees and charges work

Saffron publishes a tariff of charges giving details of what it charges for services it does not provide as standard, and it states that good service should come as standard, without charge¹⁸. The society says it worked with the mortgage industry and Which? to make its fees and charges easy to understand¹⁸. For today's figures, check the tariff on Saffron's own website.

On the mortgage side, valuation fees are charged on a set scale, available on the website, in branches or by calling the helpline. The valuation is carried out for Saffron's purposes only and does not tell you about the condition of the house². Residential valuation fees are shown including VAT, and a re-inspection on a residential mortgage carries a fee of £150¹⁹. Saffron does not offer or collect fees for homebuyers' reports: if one is required, the standard valuation fee is collected and the cost of the report is paid by the applicant directly to the surveyor, with Saffron notified at the formal mortgage offer stage¹⁹. Other fees may apply, and Saffron says to ask for details¹⁹. First-time-buyer mortgages include free valuations¹².

If you fall into arrears, Saffron will charge you for reasonable administrative and legal costs, but it says it will make sure you know how much these will be²⁰. For savings accounts, the main cost to watch is the withdrawal rules on restricted accounts rather than fees: the passbook must accompany any withdrawal on passbook accounts, and closing within the 14-day cooling-off window is free of penalty¹.

Opening a Saffron account: identity checks and documents

Saffron always verifies the identity of new customers by completing an electronic identity check, and it may also ask for further documentation to validate your identity, address and nominated bank details²¹. Where documents are needed, you must provide two: one from the personal identification list and one from the address verification list²². Accepted personal identification includes a current signed EU passport, a current UK photocard driving document (full or provisional) or the old-style full UK paper version, a current EU member state ID card, or a current British Armed Forces ID card²².

For address verification, accepted documents include a UK bank or building society current or savings account statement, a UK credit card statement or a UK Credit Union statement issued in the last 3 months and showing your current address, or a UK utility bill or prepayment agreement issued in the last 3 months showing your current address, though not a mobile phone bill. Printed online statements and bills are not accepted²². Saffron also requests information on how you intend to operate your account and where funds paid into it will come from, and it may ask you to confirm the source of funds for cash deposits and the source of wealth for large electronic transfers²¹. These checks exist to comply with the law on money laundering, to stop criminals using its products to launder money, and to prevent fraud²². If it is not possible to verify your identity, then by law Saffron will not be able to provide you with its products or services²².

Savings accounts can be opened online, in branch or by post, with some accounts available via the Online Portal for existing online members, and online applications require an email address and a mobile telephone number for each applicant²³. Once a new online account is open, Saffron automatically sends your online login details²³. ISAs can be applied for by post, in branch or online⁹.

Paying in and taking money out

You can pay money into a Saffron account by Faster Payment or standing order²⁴. The reference rule matters: quote your Saffron account number only, and if this is not quoted correctly the funds will be returned to the sender²⁵. Saffron uses Barclays for its clearing system, so all payments are made into one Barclays account and then assigned to individual customers using that reference²⁴. If you are making a payment to redeem your mortgage, use the bank details included on your redemption statement²⁵. Saffron has introduced the Confirmation of Payee service, which it uses to verify that your nominated account is a current account in your name²⁵.

Timing depends on the payment type. Payments into your account arrive on working days, meaning any day which is not a Saturday, Sunday or a bank holiday in England and Wales. The cut-off time for Faster Payments is 8pm on a working day, and for CHAPS payments it is 5pm on a working day. A payment sent by standing order or through the BACS system can take up to three working days to reach your account. A Faster Payment made on a non-working day, or after the cut-off time, arrives on the next working day²⁶.

For cheques, do not make them payable to Saffron Building Society: make the cheque payable to the name of the person holding the account²². Withdrawals from savings accounts are made to your nominated bank account, which Saffron has verified as being in your name and under your control, and you can only have one nominated bank account linked to an account²¹. To change the nominated bank account, contact the society¹⁷. On passbook accounts, the passbook must accompany any withdrawal, and to close an account you send the passbook with the withdrawal slip marked 'TO CLOSE', with cheques made payable to the account holder and sent to your registered address¹.

Banking with Saffron online, by app, in branch and by phone

Savings accounts can be opened online, in branch or by post, and existing online members can manage accounts through the Online Portal and a mobile app, including setting maturity instructions from 14 days before a fixed term product matures⁵. If you open a new online savings account and do not already bank online with Saffron, your login details are sent automatically once the account is open²³.

Personal details can be updated yourself: a home telephone number can be changed online in the 'Your Details' section and the system updates immediately, and a mobile number can be changed the same way, verified by a security code sent to the new number¹⁷. Saffron may monitor and record phone calls to check it has carried out your instructions correctly, to improve service, to resolve complaints and to investigate or prevent fraud or other crimes, and the recordings are the property of the society¹. The society's commitment to service includes being able to speak to a real person whenever you need guidance or support¹⁶. Its registered office is Saffron House, 1a Market Street, Saffron Walden, Essex CB10 1HX⁷.

If you struggle with mortgage payments

Saffron asks borrowers who are having repayment difficulties to call 0800 072 1100 as soon as possible, and it may restructure monthly repayments for a short period². Its Arrears Team can be reached on 01799 582922²⁰. A shortfall equivalent to two or more months' repayments means you are officially in arrears, and if your mortgage account is behind by one monthly payment or more, Saffron will report this to credit reference agencies, where a default remains on record for six years²⁰. Simply contacting Saffron will not affect your credit file rating²⁰.

Saffron has not signed up to the mortgage Charter, but it has agreed to follow its principles at the moment²⁰. Under those principles it offers several options. It will allow you to extend your mortgage term up to a maximum age of 67, without carrying out its usual affordability checks, and if you change your mind within the following 6 months you can revert to your original term. You can only take this option once during the life of your mortgage, and you cannot take it if you are currently in arrears because you have already missed payments²⁰. It also offers a 6-month period of temporary interest-only payments, and it may consider capitalisation of arrears, where arrears are added to the total amount you owe and paid back over the remaining term²⁰. When a new arrangement is agreed, the new rate is confirmed even if Saffron's rates increase²⁰. Saffron states it will not force anyone to leave their home for at least a year after their first missed payment²⁰.

Citizens Advice confirms that mortgage lenders generally have a duty to help if you are struggling, which could include reducing your monthly payments or taking a break from payments for a few months²⁷. For wider options and free debt help, see our guide to debt.

Financial advice through Wren Sterling

Saffron does not itself offer advice on investments, pensions, protection or related areas. It has partnered with Wren Sterling since 2012 to give members access to independent financial advice, and it acts solely as an introducer: it cannot offer you advice in this area⁷. Wren Sterling's services cover pensions and retirement planning, investing, protection, estate planning, workplace financial advice, mortgage advice, tax planning and general insurance⁷. Saffron may receive a commission or other monetary payment for making the introduction⁷. For background on these subjects, see pensions, investing and protection insurance.

When an account holder dies

Saffron asks bereaved relatives to call or visit a branch, and it says it will do its utmost to assist with any queries²⁸. Its bereavement guide covers the documents required to release funds from savings accounts and the information needed about the mortgage going forward, and as a building society its support relates mostly to savings and mortgage procedures²⁸. For joint accounts, MoneyHelper confirms that if an account holder passes away, the joint account continues in the remaining names²⁹. Payments from savings accounts held only in the deceased person's name are frozen once the death is registered, while the estate is dealt with²⁹. For how money and accounts are handled more broadly after a death, see money through life's big changes.

Fraud protection, support and how your savings are protected

Saffron takes several measures to protect savings accounts. Withdrawals are made only to a nominated bank account which the society has verified as being in your name and under your control, and it monitors transactions to help detect potential fraudulent or suspicious behaviour, holding unusual activity pending confirmation with you²¹. It is a member of CIFAS, an organisation that leads the fight against fraud by sharing data, intelligence and learning²¹. If you believe your account or personal information is at risk, Saffron asks you to let it know straight away, and a suspected fraudulent cheque paid in should be reported immediately by calling 0800 072 1100 or visiting a branch⁶.

Saffron says it will never ask you to disclose your full password when it contacts you, will never ask for your password over the phone, by email or face to face, and will never ask you to transfer money out of your account from an unknown caller³⁰. It advises members to be vigilant, use strong passwords changed regularly, check accounts for unusual changes, keep devices updated, shred important documents, never share secure details, never allow remote access to devices, and not click links in suspicious emails³¹. If someone else knows your secure details or you have lost your passbook, report it immediately³¹.

For victims of APP fraud who meet the Consumer Standard of Caution, Saffron aims to reimburse within five business days, though for more complex cases this could take up to 35 days⁶. The Financial Services Compensation Scheme advises anyone who has been scammed to speak to their bank, building society or credit union, which can protect and reimburse victims of certain types of fraud, and to report it to Action Fraud at www.actionfraud.police.uk³². For how scams work and how to avoid them, see scams and fraud.

Your eligible deposits with Saffron Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme⁵. The FSCS confirms that eligible deposits in Saffron Building Society are protected, and the society's FSCS information sheet names Saffron Building Society as covered by that protection³³. Saffron Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and appears on the Bank of England's list of building societies incorporated in the UK, with Financial Services Register number 100015⁴. Its previous names include Saffron Mortgage Finders, Saffron Moneytree, Saffron Insure, Saffron Direct and Saffron Walden Herts & Essex Building Society³. For how the compensation scheme works and where its cover stops, see consumer protection.