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Ipswich BS resumes lending up to 90 per cent LTV

  • 19/05/2020
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Ipswich BS resumes lending up to 90 per cent LTV
Ipswich Building Society has resumed lending for new purchases up to 90 per cent loan to value (LTV), and made changes to the way it assesses self-employed and furloughed affordability.


New standard residential purchase cases and remortgages will now be considered up to 90 per cent LTV with a maximum loan size of £500,000. For loans up to £750,000, the maximum LTV is 80 per cent. 

Buy to let and holiday let purchases and remortgages will be capped at 80 per cent LTV with a maximum loan size of £500,000.  

Self-build, expat residential and expat buy to let cases will also be considered up to 80 per cent LTV with maximum loan sizes of £750,000. 

Later life cases will be accepted up to 75 per cent LTV and a maximum loan size of £750,000 while capital raising is available up to 50 per cent LTV with a maximum loan size of £500,000. 

The society is now able to lend on flats, new builds and unusual properties. It is also reviewing lending on shared ownership and properties valued over £1m but this is not currently available. 


Evidence of income 

For furloughed employees, the society will request evidence of entitlement to work in the UK and will accept 80 per cent of salary up to £2,500 per month. Additional employer contributions on top of the government’s 80 per cent will not be considered. 

For self-employed applicants, the society will require a minimum of two years’ finalised accounts and will assess the industry they work in and if their business has been affected by the pandemic. 

Day rate contractor income will be assessed in the same way as self-employed using income declared on tax overviews and tax calculations. 

Richard Norrington, CEO at Ipswich Building Society, said: Alongside being able to resume purchase cases, we have made other operational changes which will allow us to proceed with a broader range of applications, as well as continuing to welcome cases from intermediaries with self-employed and furloughed clients.” 

We’re assessing the situation on a daily basis so that we are able to offer brokers the confidence and reassurance that they and their clients need.” 

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