Ipswich Building Society has continued to evolve its mortgage range with the introduction of a brand new shared ownership remortgage option available to direct applicants and intermediaries.
The new shared ownership remortgage product will give existing shared ownership borrowers the choice to remortgage their property and also to ‘staircase’; increase their borrowing to enlarge their share in the property. This new deal is designed to support diversity in the shared ownership market where there are limited options for borrowers seeking to remortgage.
In addition, Ipswich Building Society is reducing the minimum share across all of its shared ownership products from 40% to 25%, to help cater to buyers with a smaller deposit or those wishing to buy a smaller share of a property. A minimum loan size of £100,000 applies where the share is less than 40%.
The following products have been launched for shared ownership purchase and remortgage customers:
• A 2 year discount product at SVR (currently 5.24%; changing to 5.49% on 2 January), with a discount of 1.85% for two years from completion giving a current pay rate of 3.39%, with a maximum LTV of 95% of the share (5.1% APRC*), £199 application fee, no completion fee, no CHAPS fee.
• A 2 year fixed rate product at 3.89%, fixed until 31 January 2020 with a maximum LTV of 95% of the share (5.1% APRC*), £199 application fee, no completion fee, no CHAPS fee.
All new products are available for purchase and remortgage, with a £350,000 maximum loan amount. The Society offers a free valuation (up to a maximum property valuation of £1m) and fee assisted legals for remortgage applicants not carrying out any staircasing. Products will benefit from the Society’s usual 50% overpayment facility, where payments and redemptions in excess of this will be subject to a charge:
• For the 2 year discount rate product, overpayments made in excess of 50% will incur a 1% early repayment charge calculated on the total overpayment amount. For early redemption of the loan a 1% charge applies, calculated on the original loan amount.
• For the 2 year fixed rate product, overpayments made in excess of 50% will incur a 3% early repayment charge calculated on the total overpayment amount. For early redemption of the loan a 3% charge applies, calculated on the original loan amount.
Commenting on the latest announcement, Ipswich Building Society CEO, Richard Norrington said “We are excited to enhance our shared ownership offering to a currently underserved section of the market. Our new shared ownership remortgage product is a diverse addition to the mortgage marketplace and provides an option to existing borrowers who are looking to change their shared ownership deal. Reducing the minimum share on our wider shared ownership range will also help make this avenue more accessible for borrowers currently finding it difficult to get on the property ladder.
“These new products, combined with our personal approach to underwriting, allow us to offer borrowers more choice while retaining a diligent approach to lending.”
Ipswich Building Society will employ its manual underwriting process, where each application will be assessed on affordability. This is part of the Society’s commitment to helping those creditworthy individuals who find themselves overlooked by lenders who insist on machine-only mortgage application processes and take a computer-says-no approach to lending.
These new products launched on 9 December 2017.
Intermediaries can access more information about these products by calling 0330 123 1073.