The Society’s like-for-like mortgage range utilises existing regulation to offer a lower affordability assessment on application, calculated at product pay rate only and not at a stressed rate. This is available for mortgage holders who would benefit from this more flexible approach to the affordability assessment which is made possible under the current rules. Applicants must have been with their lender for two years or more, be up to date with their repayments, and must not be borrowing additional funds.
The range includes residential products, products designed for shared ownership, and products for applicants over 50.
Residential customers can take advantage of two products, available up to 80% LTV - one which is a 2-year discounted rate, giving borrowers 3.19% off the society's SVR (making its current rate 2.55%), and one which is a fixed rate at 2.80% until September 2021.
The two products aimed at later life borrowers are up to 75% LTV, and feature a discounted rate of 3.24% below the society's SVR (making the current rate 2.50%) with no early repayment charges, and a fixed rate of 2.75% until September 2021.
Shared ownership borrowers have two products available to them, at up to 90% of the share, of a 2-year fixed rate of 3.25% until June 2021, or an exclusive 2-year fix at 3.15% until September 2021, which has restricted availability.
All loans are available from 5 to 40-year terms, and all remortgage applications benefit from a free valuation (up to a maximum property value of £1m) and fee assisted legals.
Richard Norrington, CEO at Ipswich Building Society, commented on the launch:
“Back in 2014, we were among the first lenders to actively use the FCA’s new Mortgage Market Review transitional arrangements regulation introduced to enable homeowners to switch to a new provider. Whilst the FCA is currently consulting on changes to mortgage assessment criteria, responsible lending rules will not come into effect until the end of the year and are partly targeted at helping mortgage prisoners.
“We recognise that there is also a tranche of homeowners who currently find themselves unable to remortgage away from their current lender due to changes in affordability assessment processes, and who cannot wait for the new legislation. That’s why we’ve developed and introduced our new like-for-like remortgage range, to provide greater opportunity for these borrowers.”
