Ipswich Building Society has added further to its expanding range of mortgages with the launch of three new five-year fixed rate products, aimed at the Residential, Buy-to-Let and Shared Ownership markets.
The inclusion of Buy-to-Let and Shared Ownership products underlines the society’s commitment supporting diversity in the housing market, which in February this year saw it change its lending rules in order to include workers on zero-hours contracts.
The latest new products mark a further step in the society’s return to normal activity in the mortgage sector, following a pause during 2015 as a result of IT changes and new lending regulations.
It made a successful return to the mainstream mortgage market last year, with the number of applications processed in the 12 months to November 30 jumping to 1,011, from 617 the previous year, and in March this year it re-entered the Buy-to-Let market with two-year fixed rate and two-year discount deals.
The new five-year deals offer an opportunity for borrowers to lock-in to today’s historically low interest rates over a longer term.
The society is offering a Residential five-year fixed rate mortgage, available for both purchases or re-mortgages, at 2.79% up to 90% loan-to-value (LTV), with a completion fee of £800 and an application fee of £199 (4.5% APRC - Annual Percentage Rate of Charge).
A Buy-to-Let five-year fixed rate mortgage is available for purchases and remortgages at 3.25% up to 75% LTV, with a completion fee of £1,300 and an application fee of £199 (5.1% APRC).
And a Shared Ownership five-year fixed rate mortgage is available for purchases only at 4.69% up to 95% of the share, with an application fee of £199 and no completion fees (5.2% APRC).
The society will apply its standard manual underwriting process to assess each application, so helping to support “mortgage misfits” – credit-worthy individuals whose circumstances may not match the requirements of the automated assessment processes used by many lenders.
All the rates are fixed until August 31, 2022, and will then revert to the society’s standard variable rate (currently 5.24%) for the remainder of the term. For remortgage applicants, the society is offering fee-assisted legals and a free valuation (up to maximum property value of £1m).
The society is also continuing its 50% fee-free overpayment facility on all products, which allows borrowers to repay without penalty up to 50% of their original loan amount while still within in the five-year fixed rate period. (For overpayments in excess of 50% or early redemption a 5% charge will apply, based on the overpayment or the original loan amount.)
Richard Norrington, chief executive of the Ipswich Building Society, said: “We understand that the needs of borrowers are ever changing, therefore we are constantly innovating and reviewing our mortgage offer to ensure we are offering an all-inclusive product range.
“We are committed to seeing diversity in mortgage lending and our new loans will further support those mortgage misfits who may find it difficult to access the mainstream mortgage market.
“In addition to this, our 50% fee free payment facility offers added flexibility to borrowers especially in a longer term product.”
The new fixed-rate products are available to direct applicants in England and Wales and to intermediaries based in Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire and Hertfordshire along with selected networks and clubs.
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