Added: 22 March 2017
Ipswich Building Society returns to the Buy to Let market
Two new products for purchase and remortgage; transitional programme aimed at BTL ‘misfits’
Ipswich Building Society has returned to the Buy to Let mortgage market with the launch of two new products. A two year fixed rate at 3.39% (5.1% APRC¹) and a two year discount rate at SVR², currently at 5.24%, minus 2.05% to give a current rate payable of 3.44%,(5.0% APRC), are available for purchase and remortgage for 75% LTV³ mortgages up to £500,000.
Both mortgage products are on offer to direct applicants and via selected intermediaries, including the Society’s Prestige partners.
In a further boost for Buy to Let borrowers, Ipswich Building Society has confirmed it will accept remortgage applications from existing BTL borrowers of other lenders where rental income is 125% of mortgage pay rate. This will increase the options available to those looking to remortgage where they may be restricted by the FCA rules for calculating mortgages for buy-to-let landlords.
Ipswich Building Society was the first lender post-Mortgage Market Review to utilise residential transitional arrangements, enabling borrowers to switch lenders without falling foul of affordability assessments. It had campaigned for this to be continued after the implementation of the Mortgage Credit Directive.
Richard Norrington, Chief Executive, Ipswich Building Society commented: “We continue to provide choice in the marketplace for mortgage misfits and those who may not fit a ‘one size fits all’ assessment. By employing a manual approach to underwriting, with consideration of each application based on individual circumstances, this new initiative will help creditworthy Buy to Let borrowers who may be finding it hard to remortgage away from their existing lender.”
The fixed rate product offers an end date of 30 April 2019, with a fee-free overpayment³ up to 50% of the original loan and 3% early repayment charge ⁴ within the fixed rate period. The discount rate product offers an end date two years from date of completion, with a fee-free overpayment up to 50% of the original loan and 3% early repayment charge within the discount rate period.
For both products there is an application fee of £199, a completion fee of £1,300 and a standard valuation fee applies based on property valuation. Borrowers who are remortgaging will benefit from a free valuation (up to a property value of £1m) and fee assisted legals.
¹ APRC – Annual Percentage Rate of Charge is the annual rate charge for borrowing expressed as a percentage over the term of your loan
² SVR – Standard Variable Rate is the long term rate of interest that borrowers will be charged once their fixed on introduction discount ends.
³ LTV – Loan to Value is the amount borrowed as a percentage against the property value
⁴ Early repayment charge – This is a fee that is payable if you repay your mortgage early, either in full or above your overpayment allowance.