Added: 24 October 2017

Ipswich Building Society refreshes its five-year fixed rate mortgage range

New residential, buy-to-let and shared ownership products

Ipswich Building Society has launched a new five-year fixed rate mortgage range with three new products aimed at residential, buy-to-let and shared ownership borrowers. The Society is offering its members the chance to lock in longer-term deals at a time of low rates, the range further extending its commitment to providing diversity in the mortgage marketplace.

The following products have been launched, all with end dates of 31st December 2022. The range is available to direct applicants in England and Wales, and via selected intermediaries.

•    A fixed rate for residential purchase and remortgage of 2.82% with a maximum LTV of 90%, completion fee of £800 (4.5% APRC*) and £199 application fee. Maximum loan size £500,000.
•    A buy-to-let rate for purchase and remortgage at 3.27% fixed, with a maximum LTV of 75%, completion fee of £1300 and £199 application fee (4.6% APRC*). Maximum loan size £500,000.
•    A purchase-only shared ownership fixed rate of 4.75%, with a maximum LTV of 95% and no completion fee. Maximum loan size £350,000.
For residential and buy-to-let remortgage applicants, the Society offers fee assisted legals and a free valuation (up to maximum property value of £1m). All products will benefit from the Society’s popular 50% fee-free overpayment facility, allowing borrowers to repay without penalty up to 50% of their original loan amount while in the five year fixed rate period. For overpayments in excess of 50%, a 5% early repayment charge will apply calculated on the overpayment amount. For early redemption of the loan a 5% charge applies, calculated on the original loan amount.

Commenting on the new range, Richard Norrington, CEO, Ipswich Building Society, said: “We are constantly innovating and reviewing our mortgage offer to ensure we are offering variety in the market, while maintaining a diligent approach to lending.

“We are committed to seeing diversity in mortgage lending and our personal approach to underwriting will allow us to offer choice to those so-called mortgage misfits who are creditworthy individuals overlooked by high-street lenders.”

*APRC (Annual Percentage Rate of Charge): The annual rate charged for borrowing expressed as a percentage over the term of the loan.

Product Representative Examples

Residential Fixed Rate:
A mortgage of £151,200.00 payable over 30 years initially on a fixed rate until 31 December 2022 at 2.82% and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 62 monthly payments of £626.32, followed by 298 monthly payments of £805.42.         
The total amount payable would be £279,301.00 made up of the loan amount plus interest (£126,812.00), an application fee of £199, a completion fee of £800, a valuation fee of £160, a mortgage funds release fee of £35 and a mortgage discharge fee of £95. This example assumes the completion fee and mortgage funds release fee are added to the loan and that interest is charged on these fees over the mortgage term.                 
The overall cost for comparison is 4.5% APRC representative.  
[This representative example is based on assumptions that the loan would start from 6 October 2017]

Buy to Let Fixed Rate:
A mortgage of £350,000.00 payable over 25 years initially on a fixed rate until 31 December 2022 at 3.27% and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 62 monthly payments of £1,715.83, followed by 238 monthly payments of £2,030.70.
The total amount payable would be £590,297.06 made up of the loan amount plus interest (£238,353.06), an application fee of £199, a completion fee of £1,300, a valuation fee of £315, a mortgage funds release fee of £35 and a mortgage discharge fee of £95. This example assumes the completion fee and mortgage funds release fee are added to the loan and that interest is charged on these fees over the mortgage term.                 
The overall cost for comparison is 4.6% APRC representative.  
[This representative example is based on assumptions that the loan would start from 10 October 2017]

Shared Ownership Fixed Rate
A mortgage of £90,843.00 payable over 30 years initially on a fixed rate until 31 December 2022 at 4.75% and then on our Standard Variable Rate currently at 5.24% for the remainder of the mortgage term would require 62 monthly payments of £473.88, followed by 298 monthly payments of £497.48.
The total amount payable would be £178,038.60 made up of the loan amount plus interest (£86,786.60), an application fee of £199, a valuation fee of £115 and a mortgage discharge fee of £95. This example assumes the mortgage funds release fee is added to the loan and that interest is charged on this fee over the mortgage term.                 
The overall cost for comparison is 5.2% APRC representative.  
[This representative example is based on assumptions that the loan would start from 6 October 2017]