Added: 5 June 2019
Ipswich Building Society improves self build offering with interest rate reprice
Ipswich Building Society has refreshed its self build mortgage offer by reducing the rate on its discount deal.
The announcement follows the Society’s recent decision to increase the maximum loan cap to £750,000 on select mortgage products*, including self build offers, in response to rising house prices and providing greater options for growing families who require a faster route up the property ladder.
The two year discount rate is now available at the Society’s SVR, currently 5.74%, minus 1.75% giving a current interest rate of 3.99% (5.5% APRC**). Previously the product was offered at SVR minus 1.64%, giving an interest rate of 4.10%. A £1,000 completion fee, £199 application fee, CHAPS fee of £35, and a tiered valuation fee based on property value applies.
Self build mortgages are available on new projects, conversions, renovations, and knock-down and rebuild projects, with loans up to the value of £750,000 and a maximum 80% LTV.
All loans are available on an interest-only basis with a flexible staged release of funds throughout the project, enabling borrowers to avoid paying interest on the entire loan amount upfront. The Society also welcomes cases where an applicant is remortgaging from another lender on a self build basis.
Applications can be made either at the outset of the project or mid-build and, once the build is complete, borrowers can then switch to one of the Society’s residential loyalty products.
Richard Norrington, CEO at Ipswich Building Society, commented on the development: “We have many years of experience dealing with self build mortgages, with projects spanning across England and Wales. Self build is an increasingly popular market, with more people seeking to build a unique property from scratch, or to make large scale renovations in order to reflect changes in their family requirements.”
“Our improved self build offering is subject to the Society’s usual manual underwriting process, where each application is individually assessed, benefiting applicants who may fall outside of the criteria of lenders operating a more automated process. We give a truly independent lending decision enabling people to make their dream of building a unique and personal home a reality.”
Kate Ley, Head of Mortgage Sales, added: “Recent self build cases we have assisted with include a large scale £1m+ renovation/extension project, several barn conversions, and even a church conversion, albeit one with no attached burial ground. We are no strangers to handling extraordinary project applications that need an expert understanding.”