Mortgages

Ipswich BS launches 95% LTV gifted deposit products

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16th April 2018
"We recognise how difficult it is for some borrowers to get on the housing ladder "

Ipswich Building Society has launched two new gifted deposit products with extended criteria and a higher maximum LTV of 95%, without requiring deposits to be supplemented or matched by the applicant's own funds.

New criteria allows support from a wider range of family members, including the applicants’ parents, step-parents, siblings, step-siblings, grandparents, step-grandparents, children, step-children, and adopted children.

The Society’s standard residential products are already available for gifted deposits up to 90% LTV, restricted to funds from parents, grandparents and siblings. Products will continue to be available on this basis for applicants meeting this criteria.

95% LTV gifted deposit products include a two-year fixed rate at 3.45% with a completion fee of £800, application fee of £199, CHAPs fee of £35 and a tiered valuation fee based on property value.

A two-year discounted rate is also available at 2.85% - 2.60% off the Society's current SVR. The product offers a zero completion fee, an application fee of £199, CHAPs fee of £35 and a tiered valuation fee.

The products also feature a 50% fee-free overpayment facility. For overpayments in excess of this amount, or early redemption, an ERC applies at 1% until two years from completion for the discount rate product, and at 3% for the fixed rate product until 31 July 2020.

Richard Norrington, CEO of Ipswich Building Society, said: “We recognise how difficult it is for some borrowers to get on the housing ladder and our approach, based on making sensible lending decisions using expert individual underwriting, will mean that potentially more younger people and first-time buyers will be able to access the mortgage market.

“Tackling mortgage misfits, those who are under-served by the automated high street lenders, remains one of our priorities.”

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