You are here: Home - News -

Ipswich offers 50% overpayments and welcomes BTL mortgage prisoners

by:
  • 09/03/2017
  • 0
Ipswich offers 50% overpayments and welcomes BTL mortgage prisoners
The Ipswich has launched a 50% penalty-free overpayment facility on all mortgage products and opened up its buy-to-let criteria offering buy-to-let remortgages under the transitional rules, helping mortgage prisoners.

Borrowers can choose to make one payment or several payments, as long as total over-payments do not exceed the 50% cap within the term of the fixed or discounted rate.

At the same time, the society has added three fixed rates to its range. A rate of 1.39% is available up to 75% loan-to-value (LTV), alongside a rate of 1.55% up to 85% LTV, both fixed for two years. The products are available for purchase and remortgage loans up to £500,000 and carry an application fee of £199 and a completion fee of £800.

For purchase applicants with a 5% deposit, the society is offering a rate of 3.29%. Loan amounts are capped at £350,000.

Andrew Montlake, director, Coreco, said: “The mortgage market definitely needs lenders like Ipswich which is prepared to take a more proactive view on borrowers needs and circumstances.

“The rates are certainly decent, but being able to pay off up to 50% of the loan amount without penalty will be a boon to many borrowers who want the extra flexibility it brings as their circumstances change.”

Buy-to-let mortgage prisoners

In a note to its brokers, the society said it wanted to help buy-to-let customers who had become mortgage prisoners since the introduction of tougher rental income calculations had been introduced. A transitional buy-to-let transaction is a straight-swap remortgage, with no additional borrowing, assessed using pre-PRA rules. Ipswich will assess transitional buy-to-let remortgagors using a rental calculation of 125% of the pay rate. The current pay rates are 3.19% and 3.39%. The application must meet the rest of the society’s standard buy-to-let criteria.

The Ipswich’s changes follow a lukewarm reception for Tesco Bank’s rate cuts, which broker Simon Collins, technical director of John Charcol, said was indicative of the current attitude among lenders, which he described as ‘riding in packs’ when it came to rate changes. He said lenders, already operating with squeezed margins, needed to differentiate their products on criteria, if they were not prepared to make bold movements on rates. Tesco Bank launched two fixed rates which sat exactly 0.05% behind the market leaders Halifax and Skipton.

Ipswich Building Society’s new fixed-rate products will be available to direct applicants and Prestige intermediaries exclusively for a number of weeks before they become available to the society’s wider intermediary panel.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Barclays logo
Barclays promises brokers will be unaffected by mortgage centre closure

Barclays has promised brokers will be unaffected when the bank closes its mortgage contact centre in Cardiff.

Close