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95% LTV mortgage product at 4.89%

Initial rate reduced by 0.5% to 4.89%

Ipswich Building Society will be aiming to help borrowers achieve their new year's resolutions of home ownership thanks to a competitive offer for first time buyers living in the East of England. The Society has launched a new two year fixed rate 95% loan-to-value (LTV) product aimed at first time purchasers with a minimum of 5% deposit.

The new product's overall cost for comparison is 5.6% APR with an initial rate of 4.89% until 31 March 2016. Other new two year fixed rate products are once again available alongside a two year variable shared ownership product, and a two year variable self-build product. The new fixed product will be available direct and via selected mortgage brokers.

All Ipswich Building Society mortgage products are personally underwritten, ensuring that sensible judgment is used to assess whether an application meets the criteria. Unlike many high street banks that rely on automated credit scoring, Ipswich reviews each application on its own merits and individual circumstances.

Case study:

Dean Cooper and his fiancée Chantal Stevenson are Ipswich Building Society members. The couple bought their first home with a 5% deposit earlier this year, having previously lived with Dean's parents allowing them save the money for a deposit. They'd set their sights on a house in Burnham, Slough.

Dean mentions that they found that a lot of the banks charged an extortionate amount in fees for a 5% deposit mortgage. He said: "Some lenders had lots of conditions like saving with them for six months first."

Ipswich Building Society accounted for their individual circumstances which involved saving up for the deposit through a family arrangement. Dean had to prove that the 5% deposit was not a parental loan and Ipswich Building Society spoke directly with his family to confirm this.

"I didn't conform to the normal processes, and I think with another lender that would have been a problem. I think that goes to show that Ipswich Building Society listens to you as a person."

There was a delay in the purchase process and like most lenders the mortgage offer was only guaranteed for three months. Once Dean had explained the situation (the home was being let and the tenants were on a three month notice) the loan was extended by a further month.

Dean and Chantal are now happily settled in their own home. Dean adds: "The property is in a lovely area. It was really a case of 'right place, right time'... we're now making a home. That's the most important thing."

Ipswich Building Society, Chief Executive, Paul Winter comments:

"Ipswich Building Society led the way alongside other building societies and mutuals with its original 95% LTV mortgage in tough economic circumstances. We listened to our members and intermediaries then and we're listening to them now with this new product offering."

Criteria applicable to the product:

  • Fixed until 31st March 2016, subsequent rate 5.49%, with an overall cost for comparison 5.6% APR
  • Mortgage available for direct applicants in local postcode areas IP, NR, CO, CM, CB and PE and selected intermediaries in Ipswich Building Society's heartland
  • The product is available from the 16th December but with limited availability.
  • Application rate, payable with application and non-refundable £150
  • Completion fee £975
  • No charge for overpayments of up to 50% of original loan amount
  • Early repayment charge period ends 31 March 2016
  • Overpayment of 50% or above, the ERC is 3% of the overpayment
  • Redemption, the ERC is 3% of the original loan amount

*FIXED RATE of 4.89% until 31 March 2016 before switching to Ipswich Building Society standard variable rate 5.49%

Your home may be repossessed if you do not keep up repayments on your mortgage.