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Ipswich Building Society launches new 2-year fixed range mortgage offers

 Added: 13 June 2017

Ipswich Building Society launches new 2-year fixed range mortgage offers

Opening up further choice in Residential and Buy-to-Let deals

Ipswich Building Society has refreshed its two year mortgage range, expanding the appeal of its Residential and Buy-to-Let products at the 75%- 95% Loan to Value (LTV) range following its roll out of three new 5 year fixed rate products in May. The new deals are designed to appeal to the changing needs of borrowers and represents the Society’s commitment to supporting accessibility in the mortgage marketplace, particularly for the so-called mortgage misfits who may find themselves left behind by mainstream lenders using automated underwriting.
The following products have been launched:

•    A Residential rate of 3.45% fixed until 31.08.19, with a maximum LTV of 95% and completion fee of £800 (5.1% APRC*). Maximum loan size £350,000. For purchase only.
•    A Residential rate of 2.15% fixed until 31.08.19, with a maximum LTV of 90% and completion fee of £800 (4.9% APRC*). Maximum loan size £350,000. For purchase and remortgage.
•    A Buy-to-Let rate of 3.10% fixed until 31.08.19, with a maximum LTV of 75% and completion fee of £1300 (5.0% APRC*). Maximum loan size £500,000. For purchase and remortgage.
•    A Buy-to-Let rate of Standard Variable Rate currently 5.24% with a discount of 2.39%, giving a pay rate of 2.85% for two years from date of completion, with a maximum LTV of 75% and completion fee of £1300 (5.0% APRC*).

Maximum loan size £500,000. For purchase and remortgage. See representative example for representative cost of credit.

All products benefit from the Society’s usual 50% fee free overpayment facility, with payments in excess of this, and early redemption, subject to an Early Repayment Charge. All mortgages have an application fee of £199, a CHAPs fee of £35 and a valuation fee is charged based on the value of the property. For remortgage applicants the Society offers a free valuation (up to maximum property valuation of £1m) and fee assisted legals.  
Remaining two year fixed rate products in the Society’s range have been updated with a refreshed end date and Early Repayment Charge period until 31 August 2019.

Commenting on the revised range, Richard Norrington, CEO, Ipswich Building Society, said: “Having recently rolled out options for those wishing to fixed their mortgage for 5 years, with this refresh of our 2 year range we are continuing to respond to the mortgage market, offering competitive products for both Residential and Buy-to-Let lenders. Direct applicants, and those using intermediaries, will receive our personalised service as standard as our manual underwriting gives a real life assessment of affordability, as opposed to a computer algorithm that may too readily rule out creditworthy individuals.”

These new fixed rate products are available to direct applicants in England and Wales, intermediaries based in Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire and Hertfordshire and nationally via 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 rate of 3.45% fixed until 31.08.19
A mortgage of £151,200.00 payable over 30 years initially on a fixed rate until 31 August 2019 at 3.45% and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 27 monthly payments of £678.47, followed by 333 monthly payments of £828.56. The total amount payable would be £294,683.17 made up of the loan amount plus interest (£142,194.17), 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 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 17 May 2017]



•    Residential rate of 2.15% fixed until 31.08.19
A mortgage of £151,200.00 payable over 30 years initially on a fixed rate until 31 August 2019 at 2.15% and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 27 monthly payments of £573.42, followed by 333 monthly payments of £819.68. The total amount payable would be £288,889.78 made up of the loan amount plus interest (£136,400.78), 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 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 4.9% APRC representative. [This representative example is based on assumptions that the loan would start from 17 May 2017]



•    Buy-to-Let rate of 3.10% fixed until 31.08.19
A mortgage of £350,000.00 payable over 25 years initially on a fixed rate until 31 August 2019 at 3.10% and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 27 monthly payments of £1,684.40, followed by 273 monthly payments of £2,069.40. The total amount payable would be £611,034.00 made up of the loan amount plus interest (£259,090.00), 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 5.0% APRC representative. [This representative example is based on assumptions that the loan would start from 17 May 2017]



•    Buy-to-Let rate of Standard Variable Rate currently 5.24% with a discount of 2.39%, giving a pay rate of 2.85% for two years from date of completion
A mortgage of £350,000.00 payable over 25 years initially on our Standard Variable Rate currently at 5.24% with a discount of 2.39% for 24 months, giving a current rate payable of 2.85%, then on our Standard Variable Rate for the remainder of the mortgage term would require 24 monthly payments of £1,638.79, followed by 276 monthly payments of £2,069.13. The total amount payable would be £611,019.84 made up of the loan amount plus interest (£259,075.84), 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 5.0% APRC representative. [This representative example is based on assumptions that the loan would start from 17 May 2017]

 

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