The mutual is offering first-time buyers a two-year fixed rate mortgage at 4.89%. This is cheaper than the majority of Help to Buy 2 products, although HSBC has a two-year fixed rate at 4.79%.
Moneyfacts financial specialist Rachel Springall said the rate cut reflected the effect of Help to Buy: “The way the first-time buyer market works, mutuals want to keep a foothold in that market. They want to be competitive.
“By undercutting Help to Buy lenders on rate they are going to get more of an attraction towards them.”
However, Ipswich BS could have made its product more competitive by reducing the upfront fee or providing more incentives, she added.
The 95% LTV mortgage is available for direct applicants in local postcode areas IP, NR, CO, CM, CB and PE, as well as selected local intermediaries.
Ipswich BS chief executive Paul Winter said: “Ipswich Building Society led the way alongside other building societies and mutuals with its original 95% LTV mortgage in tough economic circumstances.
“We listened to our members and intermediaries then and we’re listening to them now with this new product offering.”
