Ipswich Building Society is traditional in its style (just like Yorkshire puddings) and our lending policy is proudly boring and reliable (just like a Volvo). We’ve enjoyed great success in the buy-to-let market (it could be said we’re Super Troupers in this market, ahem).
So whilst prime residential mortgage lending remains at our core, buy-to-let is an important part of our overall mortgage business.
We’ve been in the buy-to-let market for a number of years now. We believe it’s important for everyone to be prepared for the future, so helping people to obtain an investment that supports their future plans such as a buy-to-let property seemed logical. However does this align to the values of a traditional, regional mutual?
It has been stated in the media that the availability of buy-to-let mortgages has led to increased property prices forcing first time buyers out of the market. In reality it’s not that simple. House building has not kept up with demand for decades with supply severely hampered, whilst the government has introduced incentive schemes to further enhance that unmet demand.
The only possible outcome is that prices will increase. The real culprit is the lack of public sector or quasi-public sector house building. Anyway, stepping off my soap box and back to why we’re in buy-to-let…
Buy-to-let adds diversity to our mortgage book, helping us to manage risk. Furthermore, it’s really about the borrower and less about the product; if we can see the mortgage is affordable and a sensible level of equity is available, we can consider it.
This open approach is especially important for those who are retired, on flexible incomes or are self-employed. Our personalised underwriting enables us to do this, treating each individual’s mortgage application on its own merits.
The way I see it, Ipswich Building Society offering buy-to-let mortgages is not only practical but responsible, just like that Volvo…
Paul Winter is chief executive of Ipswich Building Society
