Added: 6 May 2021
Ipswich Building Society combines later life and standard residential mortgages into one range
Ipswich Building Society will no longer be operating ‘later life’ mortgages aimed solely at over 50s. Instead it is combining its ranges into one set of standard residential mortgages for all.
The Society, which is set to rebrand to Suffolk Building Society later in 2021, has no maximum age caps on its standard residential products taken on repayment terms. Interest only products will be capped at age 95 at the end of the mortgage term.
The new changes are the latest improvement to the Society’s ongoing commitment to later life lending, which will still have an older borrower focus but is shifting towards a customer-led approach over a product-led one. Previous research undertaken by Ipswich Building Society revealed that as people get older, they feel they are treated differently as a mortgage applicant. In fact, 60% of over 50s felt they had fewer products to choose from than those in younger age brackets*.
Charlotte Grimshaw, Head of Mortgages, at Ipswich Building Society said: “We remain absolutely committed to later life lending as we understand the challenges many older borrowers have faced in the past and continue to face today. In many circumstances, older borrowers present a low risk to lenders because their pensionable income is stable and guaranteed and therefore, it simply makes sense that they can select from the same products as other borrowers.”
The Society will, however, be retaining an exclusive option for later life applicants with a minimum age of 55. The 2-year discount rate product comes with no early repayment charges, therefore providing older borrowers with flexibility should they have a sudden change in circumstances.
Grimshaw continued: “We know that being tied in to any financial product later in life can be a concern for some people, which is why we’ve decided to retain an option for now which is specifically aimed at this group. With no early repayment charges, borrowers will have peace of mind that should they need to downsize or should their health take a downturn, they are able to pay off their mortgage with no additional costs.”