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Ipswich Building Society launches 95% LTV deals for local first time buyers

Added: 15 January 2019

Ipswich Building Society launches two 95% LTV deals for local first time buyers (including those with gifted deposits)

Ipswich Building Society has launched two new mortgage deals for local first time buyers looking to get on the property ladder. Applicants can access up to 95% LTV and loans are available to applicants with gifted deposits, including entirely gifted funds for those who have been renting for 12 months or more.

The two new ‘heartland exclusive’ products comprise two-year fixed and discount options, offered at lower rates than the Society’s standard product range:

  • Fixed rate at 2.93% until 31 March 2021 (5.3% APRC*), with a completion fee of £800.
  • Discount rate at the Society’s Standard Variable Rate (currently 5.74%) minus 3.01%, giving a pay rate of 2.73% for two years from the completion date (5.4% APRC*), with no completion fee.

Mortgages are available from five to 40-year terms up to a maximum loan of £500,000 and have an application fee of £199, CHAPs fee of £35 and a tiered valuation fee based on property value.

During the fixed or discount rate period the products offer fee-free overpayments up to 50% of the original loan amount. 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.

All Ipswich Building Society mortgage applicants benefit from the Society’s established manual underwriting process. With each lending decision, the Society takes individual circumstances into account and is therefore able to offer a more personal approach to borrowers who may otherwise fall outside of the criteria of automated lenders.

Heartland area

The new deals are exclusive to property purchases within Suffolk, Norfolk, Essex, Cambridgeshire, Hertfordshire, Bedfordshire, and Buckinghamshire, and are available either direct or through mortgage intermediaries based in these counties.

Gifted deposits and proof of rental history

Applicants who are using entirely gifted funds for their deposit can access up to 95% LTV - providing the deposit is from a close family member such as parent, grandparent, child or sibling. Applicants must also be able to supply 12 months’ worth of rental history to access 95% LTV. Where rental history cannot be provided, the Society will lend up to 90% LTV.

Commenting on the launch, Richard Norrington, CEO at Ipswich Building Society said: “As a mutual organisation we are committed to supporting our members and local communities. I am delighted we are able to assist first time buyers, purchasing their property in our heartland area, with these dedicated products.

“Our manual underwriting process allows us to better understand the personal circumstances of applicants, meaning we are often able to lend to people who might be turned down by a provider with an automated application process. This manual approach can be extremely beneficial for first time buyers who may need a helping hand as they embark on an unfamiliar journey towards home ownership.”

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