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Ipswich Building Society forges ahead with five-year fixed rate mortgage range

 Added: 26 May 2017

Ipswich Building Society forges ahead with five-year fixed rate mortgage range

Providing accessibility to long term options in Residential, Buy-to-Let and Shared Ownership

Ipswich Building Society has added to its expanding mortgage range with three new five-year fixed rate products aimed at the Residential, Buy-to-Let and Shared Ownership markets. At a time of industry low interest rates, the Society is offering its members the chance to lock in longer-term deals.

The focus on Buy-to-Let and Shared Ownership represents the Society’s belief in supporting diversity in the housing market, with the new products designed to appeal to a wider range of borrowers. Affordability for the new five year deals will be assessed by applying a stress test based on the product pay rate only, and Ipswich Building Society will apply its standard manual underwriting process to assess each application, supporting those so-called mortgage misfits: creditworthy individuals whose circumstances may not meet automated assessment processes.

The Society is offering a Residential 5 year fixed rate mortgage available for both purchases or re-mortgages at 2.79% up to 90% LTV, with a completion fee of £800 and an application fee of £199 (4.5% APRC*). A Buy-to-Let 5 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*).
As well as a Shared Ownership 5 year fixed rate mortgage 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*). All products are fixed until 31 August 2022, then revert to the Society’s Standard Variable Rate (currently 5.24%) for the remainder of the term. For remortgage applicants, the Society offers fee assisted legals and a free valuation (up to maximum property value of £1m).

The Society has continued its popular 50% fee free overpayment facility on all products, which allows borrowers to repay without penalty up to 50% of their original loan amount whilst in the 5 year fixed rate period. For overpayments in excess of 50% a 5% early repayment charge applies, based on the overpayment amount. For early redemption a 5% charge applies, based on the original loan amount.

Commenting on the launch of the new five-year fixed rate range, Richard Norrington, CEO, 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.”

These new fixed rate products are available to direct applicants in England and Wales, and intermediaries based in Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire and Hertfordshire along with selected networks and clubs.

*APRC (Annual Percentage Rate of Charge): The annual rate charged for borrowing expressed as a percentage over the term of the loan.

Product Representative Examples

Residential 5 Year Fixed Rate
A mortgage of £151,200.00 payable over 30 years initially on a fixed rate of 2.79% until 31 August 2022 and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 63 monthly payments of £623.90 and 297 monthly payments of £804.45. The total amount payable would be £278,681.35 made up of the loan amount plus interest (£126,192.35), an application fee of £199, a completion fee of £800, a valuation fee of £160, a mortgage funds release fee of £35 and a mortgage exit fee of £95. This example assumes the completion fee and mortgage funds release fee are added to the loan and that interest is charged on these fees over the mortgage term.
The overall cost for comparison is 4.5% APRC representative. [This representative example is based on assumptions that the loan would start from 18 May 2017]

Buy To Let 5 Year Fixed Rate
A mortgage of £350,000.00 payable over 25 years initially on a fixed rate of 3.25% until 31 August 2022 and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 63 monthly payments of £1,712.11, followed by 237 monthly payments of £2,028.86. The total amount payable would be £589,311.75 made up of the loan amount plus interest (£237,367.75), an application fee of £199, a completion fee of £1,300, a valuation fee of £315, a mortgage funds release fee of £35 and a mortgage discharge fee of £95. This example assumes the completion fee and mortgage funds release fee are added to the loan and that interest is charged on these fees over the mortgage term. The overall cost for comparison is 5.1% APRC representative. [This representative example is based on assumptions that the loan would start from 18 May 2017]

Shared Ownership 5 Year Fixed Rate
A mortgage of £90,843.00 payable over 30 years initially on a fixed rate of 4.69% until 31 August 2022 and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 63 monthly payments of £470.60 and 297 monthly payments of £496.96. The total amount payable would be £177,653.92 made up of the loan amount plus interest (£86,401.92), an application fee of £199, a valuation fee of £115 and a mortgage exit fee of £95.
The overall cost for comparison is 5.2% APRC representative. [This representative example is based on assumptions that the loan would start from 18 May 2017]

 

 

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