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Ipswich Building Society launches revised self-build discount mortgage product

Added: 11 April 2018

Ipswich Building Society launches revised self-build discount mortgage product
Support for self-build borrowers – boosting access to home ownership

Ipswich Building Society has furthered its commitment to supporting access to home ownership with the launch of a new self-build two-year discount mortgage product offering attractive rates and an innovative ‘reducing early repayment charge’ feature.

Available for new builds, conversions and those undertaking a knock down and rebuild project – for both purchase and remortgage applicants – the new product is at the Society’s Standard Variable Rate, currently 5.49%, with a discount of 1.39% giving a current pay rate of 4.10% for two years from completion (5.4% APRC*). A completion fee of £1000 applies and loans are available up to 80% LTV, with a maximum loan of £500,000. An application fee of £199, CHAPs fee of £35 and a tiered valuation fee - based on final build value - apply.

The product features a generous 50% fee free overpayment facility, whereby borrowers can overpay penalty free by up to 50% of the original loan amount. An Early Repayment Charge (ERC) of 3% applies for first twelve months#, reducing to zero for the remaining twelve months – marking a change from a previous ERC of 3% for the full 2 year period. On completion of the self-build project, subject to meeting qualifying criteria, borrowers can switch penalty-free to one of the Society’s non self-build loyalty products.

Commenting on the new product, Ipswich Building Society Chief Executive Richard Norrington, said:
“We’re keen to continue supporting self-build borrowers, a typically under-served element of the mortgage market, by lowering costs and providing attractive rates with penalty-free switching and early repayment options.

“Our manual approach to mortgage underwriting allows us to remain flexible in offering innovative products to some of the UK’s so-called mortgage misfits, those who are often overlooked by other lenders because they do not meet ‘standard’ criteria for lending.”

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