Following its withdrawal from the mortgage market on 8 August, Suffolk Building Society has today embarked on a phased return to lending by introducing a select number of products for self build and expat applicants.
During July and early August, the Society received an extremely high level of business which resulted in service levels exceeding the timescales the Society is comfortable with.
Charlotte Grimshaw, Head of Mortgages, Suffolk Building Society explained: “Our temporary measure to withdraw from the market has enabled us to progress pipeline cases and get our timescales down to more comfortable levels.
“We are now pleased to begin our phased return to market with products available for self build and expat clients. We are also keen to resume lending with a full product range and will be carefully monitoring our pipeline and timescales, with a view to introducing additional options soon – all being well, within the next few weeks.”
The following mortgages will be available to intermediaries from 20 September for purchase and remortgage applicants:
Self build
- 2-year discount rate at the Society’s Standard Variable Rate (currently 5.84%) minus 1.75%, giving a current pay rate of 4.09% for 24 months from the completion date (5.5% APRC). Application fee £199, completion fee £1499. Maximum loan size £1m, minimum £75,000, maximum loan to value (LTV) 80%.
- 2-year discount rate at the Society’s Standard Variable Rate (currently 5.84%) minus 1.19%, giving a current pay rate of 4.65% for 24 months from the completion date (5.7% APRC). Application fee £199, completion fee 0.15% of loan amount. Maximum loan size £2m, minimum £1m, maximum loan to value (LTV) 70%.
Expat residential (all 80% LTV)
- 2-year discount rate for capital and interest loans at the Society’s Standard Variable Rate (currently 5.84%) minus 2.19%, giving a current pay rate of 3.65% for 24 months from the completion date (5.2% APRC)
- 2-year discount rate for interest only loans at the Society’s Standard Variable Rate (currently 5.84%) minus 2.05%, giving a current pay rate of 3.79% for 24 months from the completion date (5.4% APRC)
All expat residential products have an application fee of £199 and a completion fee of £999. Maximum loan size £1m, minimum £75,000, maximum loan to value (LTV) 80%.
Expat buy to let
- 2-year discount rate at the Society’s Standard Variable Rate (currently 5.84%) minus 1.85%, giving a current pay rate of 3.99% for 24 months from the completion date (5.8% APRC)
- 5-year fixed rate at 4.75% fixed for 60 months from the completion date (5.8% APRC)
All expat buy to let residential products have an application fee of £199 and a completion fee of £1499. Maximum loan size £1m, minimum £75,000, maximum loan to value (LTV) 80%.
Expat holiday let
- 2-year discount rate at the Society’s Standard Variable Rate (currently 5.84%) minus 1.85%, giving a current pay rate of 3.99% for 24 months from the completion date (5.6% APRC*)
Application fee £199, completion fee £1999. Maximum loan size £750,000, minimum £75,000, maximum loan to value (LTV) 80%.
Self build and expat residential products are available for a maximum 40 year term, with expat holiday let and expat buy to let available for a maximum 30 year term. For capital and interest products there is no maximum age at the end of the mortgage term, for interest only this is capped at 95.
All products have a CHAPs fee of £35 and a tiered valuation fee based on property value applies. During the initial mortgage term, the Society offers fee-free overpayments up to 50% of the original loan amount.