New mortgage range launched by Ipswich Building Society
Ipswich BS has extended its buy-to-let mortgage offering to include holiday let mortgage products
Ipswich Building Society has extended its existing buy-to-let mortgage offering to include a range of holiday let mortgage products.
All products are available exclusively for properties purchased with the intention of letting for holiday purposes and need to be based in the society’s heartland area of Suffolk, Norfolk, Essex, Cambridgeshire, Hertfordshire, Bedfordshire and Buckinghamshire.
The new products are available to direct applicants, intermediaries based in those heartland area and members of selected networks and clubs.
The products are all available with a maximum 80 per cent loan to value (LTV) and are available on capital and interest or interest-only repayment basis.
They include a two-year fixed rate at 2.95 per cent until 30 September 2021 and a three-year fixed rate at 3.10 per cent until 30 September 2022.
There is also a two-year discount rate at the society’s standard variable rate currently at 5.74 per cent minus 2.94 per cent, giving a current pay rate of 2.80 per cent for two years from the completion date.
All products have an application fee of £199, a completion fee of £950, a CHAPS fee of £35 and a tiered valuation fee based on property value applies. All remortgage applicants benefit from a free valuation up to a maximum property value of £1m and access to fee assisted legal services.
During the initial mortgage term, the society offers fee-free overpayments up to 50 per cent of the original loan amount.
All products are subject to a maximum 25-year term with no maximum age restriction; a minimum loan of £75,000 and a maximum loan of £500,000, with a minimum property value of £100,000.
Head of mortgage sales at Ipswich Building Society, Kate Ley said they hope that by applying a competitive minimum income cap and accepting pension income when assessing affordability, they can help retired applicants with their holiday let decisions as well as providing options for younger applicants, such as those first entering the holiday let market.
Richard Norrington, CEO at Ipswich Building Society, added that they are delighted to be introducing a range of holiday let mortgage products and to be potentially opening up an opportunity to those who thought this was out of their reach.