Added: 12 July 2018
Enhanced credit repair criteria and launch of new buy-to-let products
Ipswich Building Society is continuing to evolve its mortgage offer with the introduction of two new products to its buy-to-let range and three new products to its credit repair range which also come with refreshed criteria. This comes as part of the Society’s commitment to providing diversity in the mortgage market and catering to demand from borrowers who don’t always fit the typical high street criteria for lending.
The Society has expanded its buy-to-let range with the introduction of two new five-year fixed rate products, including a deal for expats seeking to purchase or remortgage a property in the UK. Changes to its credit repair range sees the introduction of three fixed rate options for borrowers wishing to have more certainty over their mortgage payments.
The following buy-to-let products have been launched and will be available to direct customers across England and Wales and through selected intermediaries, for purchase and remortgage applicants borrowing up to £500,000:
- A Buy-to-let 5-year fixed rate at 3.50% until 30/09/2023 (5.0% APRC*), with a maximum Loan-To-Value (LTV) of 80%. An application fee of £199, completion fee of £1,250, CHAPS fee of £35 and tiered valuation fee based on property value apply. For remortgage applicants, the Society offers a free valuation for properties up to £1m, and fee assisted legals. Fee free overpayments up to 50% of the original loan amount and an early repayment charge of 5% applies.
- An Expat Buy-to-let 5-year fixed rate at 4.15% until 30/09/2023 (5.2% APRC*), with a maximum LTV of 75%. An application fee of £199, completion fee of £1,499, CHAPS fee of £35 and tiered valuation fee based on property value apply. Fee free overpayments up to 50% of the original loan amount and an early repayment charge of 5% applies.
For borrowers who require credit repair products, the Society has expanded its dedicated range and launched three new fixed rate products. These continue to offer the credit repair guarantee, which pledges that borrowers who have made all payments on time over the initial fixed rate period can then transfer from the specialist product to any of its standard mortgage retention products.
The products are available for purchase and remortgage through the Society’s panel of Prestige intermediaries and via selected broker partners, for borrowers with increasing tiers of credit repair:
- A Near Prime 2-year fixed rate at 3.50% until 30/09/2020 (5.3% APRC*). Fee free overpayments up to 50% of the original loan amount and an early repayment charge of 3% applies.
- A Feather Prime 2-year fixed rate at 3.75% until 30/09/2020 (5.3% APRC*). Fee free overpayments up to 50% of the original loan amount and an early repayment charge of 3% applies.
- A Credit Recovery 3-year fixed rate at 4.50% until 30/09/2021 (5.4% APRC*). Fee free overpayments up to 50% of the original loan amount and an early repayment charge of 3% applies.
These credit repair products are available for loans from £100,000 to £350,000, and have an application fee of £199, a completion fee of £800, a CHAPS fee of £35 and a tiered valuation fee based on property value.
The Society has refreshed its credit repair criteria, making the products more accessible to borrowers with impaired credit. For those on a Debt Management Plan (DMP) which is being conducted satisfactory, any CCJs or defaults absorbed within the DMP will be ignored on proof of the instalment order.
On all products for overpayments in excess of 50% of the original loan amount, or early redemption, an Early Repayment Charge (ERC) applies. For overpayments this charge is calculated on the overpayment amount exceeding the 50% allowance, and for early redemption is calculated on the original loan amount.
Commenting on the range refresh, Ipswich Building Society CEO, Richard Norrington said: “We are excited to announce the launch of our new five year buy-to-let deals, and the introduction of fixed rate products for credit repair borrowers. These new deals have been implemented to support diversity in the mortgage market where there are limited options for borrowers who may not fit the requirements of some computer-based mortgage application processes, often employed by high-street lenders.
We are confident that these enhancements to our mortgage range will boost our competitiveness and appeal to a wider range of customers.”
The Society will employ its manual underwriting process, where each application will be assessed on affordability, with the ability to take borrowers’ personal circumstances into account.