Building society back first-time buyers

IPSWICH Building Society has pledged not to follow the move of some other lenders in loading interest rates for borrowers taking out loans representing a higher proportion of their property's value.

IPSWICH Building Society has pledged not to follow the move of some other lenders in loading interest rates for borrowers taking out loans representing a higher proportion of their property's value.

First time buyers will continue to quality for a selection of 90% loan-to-value (LTV) products from the society without incurring any premium, and some 95% options are also available.

In recent weeks, a number of lenders have changed their criteria in response to tightening credit conditions, but the Ipswich views the move as unfair, particularly on first-time buyers.

Paul Winter, the society's chief executive, said: “Undoubtedly the credit crunch has resulted in a more cautious lending environment, but you could be forgiven for coming to the conclusion that some lenders are using this as an excuse to punish low-deposit buyers.


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“Applying a 0.2% to 0.5% loading to 95% LTV borrowers makes a massive difference to mortgage costs. We think that this is particularly unfair to those buying for the first-time, so have not followed suit.

“The last thing we want to do is depress the first time buyer end of the market, which is already weak by historical comparison.”

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