Added: 14 January 2020
Ipswich Building Society extends holiday let mortgages to properties throughout England and Wales
Responding to intermediary demand, Ipswich Building Society has extended the availability of its holiday let mortgage products to allow applications for properties located across the entirety of England and Wales. Previously, properties needed to be based in the Society’s heartland area of Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire.
All holiday let mortgages are available to intermediaries based in the Society’s heartland area, members of selected networks and clubs as well as direct applicants.
Richard Norrington, CEO at Ipswich Building Society, commented: “Back in August of last year, holiday let was a new product for us, and having tested the waters with local properties and local landlords, we’re now in a position to roll this out more widely. We’ve had considerable interest from intermediaries and look forward to helping many more people become holiday let landlords.
“With increasing numbers of Brits taking a serious look at their carbon footprint and trying to reduce the number of flights they take, as well as exchange rates making the UK an appealing holiday destination for foreign tourists, the outlook for the holiday let market looks set to be promising.”
Products & Criteria
The following products are all available with a maximum 80% LTV, and are available on capital and interest or interest only repayment basis:
- 2-year fixed rate at 2.95% until 31 March 2022 (5.4% APRC*)
- 2-year discount rate at the Society’s Standard Variable Rate (currently 5.74%) minus 2.94%, giving a current pay rate of 2.80% for two years from the completion date (5.4% APRC*)
- 3-year fixed rate at 3.10% until 31 March 2023 (5.1% APRC*)
All products are subject to a maximum 30 year term with no maximum age restriction; a minimum loan cap of £75,000 and a maximum loan cap of £500,000 apply, with a minimum property value of £100,000.
An application fee of £199, a completion fee of £950, a CHAPS fee of £35 and a tiered valuation fee based on property value applies. All remortgage applicants benefit from a free valuation up to a maximum property value of £1m and access to fee assisted legal services.
During the initial mortgage term, the Society offers fee-free overpayments up to 50% of the original loan amount.**
* APRC (Annual Percentage Rate of Charge): The annual rate charged for borrowing expressed as a percentage over the term of the loan.
** For overpayments in excess of 50% of the original loan amount, or early redemption, an Early Repayment Charge (ERC) applies. For fixed rate products this is at 3% and for discount rate products at 1%. For overpayments this charge is calculated on the overpayment amount that exceeds the 50% allowance, and for early redemption is calculated on the original loan amount.