Mortgages

Additional information applicable to all mortgage packages available from Ipswich Building Society.

Lending Area
England and Wales

Property
All FREEHOLD considered (except flats and maisonettes)
LEASEHOLD - Minimum of 70 years left on lease at the start of our mortgage

Mortgage term
Minimum 5 years Maximum 40 years
(Buy to Let mortgages maximum of 25 years)

Status
All loans are subject to status and valuation. Borrowers must be aged 18 years or over. Security over the property is required.

Loan Size
Minimum Loan is £25,000 For maximum loan size please refer to our Mortgage Rate Guide.

Shared Ownership
Available on Affordable Home Loan only. Subject to Lease meeting Society’s Shared Ownership terms and conditions.

Self Build
Available on all products except specialist remortgage products, Buy to Let and Affordable Home Loan. Please ask for details.

Right to Buy/Right to Acquire
Available on all products except specialist remortgage products, Buy to Let and Affordable Home Loan. Additional funds can be borrowed for home improvements. Maximum LTV 75% of open market value. 100% of discounted purchase price available.

Buy to Let
Up to 4 properties considered. Monthly rental income must be at least 120% of monthly interest repayment. Total loan to individual/joint borrowers not to exceed £500,000.
Requirements:
• An assignment of the rental income is required
• Properties must be let on an approved Assured Shorthold Tenancy
• Properties must not be in multiple occupancy
• Letting must be on an unfurnished basis
• The let will be to an individual (includes couples and families) but not to a company or business
• The buildings insurance policy must be in joint names with the Society and provide a minimum of £1,000,000 public liability cover.
• Applicants must:
- currently or have previously owned their own home
- be a UK resident
- not be in arrears with any mortgage they currently have
- must be in receipt of income from employment/self employment pension or investment.

Interest
Interest is calculated on a daily basis. Additional payments over and above the monthly repayment immediately result in a reduction of the amount on which interest is charged.

Repayment Methods
Loans can be taken on a repayment interest only or part repayment/part interest only basis. The Society will be happy to provide a quote for life assurance to cover the loan through Liverpool Victoria Friendly Society Ltd.

Early Repayment Charge
Some of our products have an Early Repayment Charge - please refer to the relevant section. Where a loan is redeemed as a result of the death of a borrower there will be no early repayment penalty.

Higher Lending Charge
If the loan exceeds 75% the Society will take out a mortgage indemnity policy. The Society may pay this charge for loans up to 90% loan to value (LTV), but for loans 90-95% LTV you will be required to pay the HLC. The HLC is calculated at the rate shown for each £100 of the loan in excess of 75%, subject to a minimum charge of £250. The charge can be added to the mortgage advance. Please refer to the Key Facts Illustration for the amount of charge (if applicable).
Loan
75 - 80% £3.36 per £100
80 - 85% £3.99 per £100
85 - 90% £4.62 per £100
90 - 95% £9.50 per £100
95 - 100% £15.75 per £100

Property Valuation Charge

Where a product provides a ‘FREE’ valuation, we will pay for a standard mortgage valuation only, provided our nominated valuer is used. Where a product states ‘legal fees paid’ we will pay for standard remortgage work only, provided our nominated solicitor is used.

Insurance
You will be required to take out buildings insurance to insure your property against the usual perils. The Society will be happy to provide quotations for this insurance but if you wish you can arrange your own cover. Where you use your own buildings policy there will be a fee of £35 to cover our contingency insurance costs.

Borrowing for Home Improvements
Up to a maximum 95% LTV. Estimates will be required.

Borrowing for consolidation of debts providing:
• The total loan including the existing mortgage exceeds £25,000 and
• The term for Additional Borrowing does not exceed 10 years and
• The total loan does not exceed 90% LTV.

Borrowing for capital raising (ie; second home, car etc) providing:
• The total loan including the existing mortgage exceeds £25,000 and
• The total loan does not exceed 90% LTV.

Monthly Payments
The mortgage payments must be made by Direct Debit on the 1st of each month. The first payment will be on the 1st of the month immediately following completion. If payments are not made in full and on time, the Society reserves the right to transfer your loan to the Society’s Standard Variable Rate.

Portable: For all current product options, existing customers moving home may either: exercise portability (where applicable)
or: take out a new mortgage from the Society's full product range. The Early Repayment Charge will not be made.

Guarantors
The Society will consider taking a guarantee from close blood relatives, for example, a father for his son. Any guarantor must meet the same status requirements as the borrower(s). The Society insists that all guarantors take independent legal advice to make sure that they understand their commitment and the potential consequences of their decision. Guarantors may become liable to repay the full debt outstanding to the Society instead of or as well as you the borrower.

Ipswich Building Society acts as an introducer to Liverpool Victoria Friendly Society Limited for investment, protection and pensions. Ipswich Building Society is authorised and regulated by the Financial Services Authority and entered on the Financial Services Authority Register, registration number 104875.