Ipswich is returning to the buy-to-let (BTL) market with the launch of two products for purchase and remortgage.
The building society is offering a two-year fixed-rate at 3.39 per cent and a two-year discount of 3.44 per cent - 2.05 percentage points below its standard variable rate of 5.24 per cent.
On offer to direct applicants and via selected intermediaries, both loans are available for purchase and remortgage for 75 per cent loan-to-value mortgages up to £500,000.
Ipswich has also confirmed it will accept remortgage applications from existing BTL borrowers of other lenders where rental income is 125 per cent of mortgage pay rate.
The fixed-rate product has an end date of 30 April 2019, with a fee-free overpayment up to 50 per cent of the original loan and 3 per cent early repayment charge within the fixed-rate period.
The discount rate product’s end date is two years from the date of completion, with a fee-free overpayment up to 50 per cent of the original loan and 3 per cent ERC.
Both products feature an application fee of £199, a completion fee of £1,300 and a standard valuation fee, while remortgagers will benefit from a free valuation on properties up to £1m and fee-assisted legals.
Chief executive Richard Norrington said: “We continue to provide choice in the marketplace for mortgage misfits and those who may not fit a ‘one size fits all’ assessment.
“By employing a manual approach to underwriting, with consideration of each application based on individual circumstances, this new initiative will help creditworthy buy to let borrowers who may be finding it hard to remortgage away from their existing lender.”
Paul Caulfield, senior mortgage consultant at Ipswich-based Evolve Financial Solutions, commented: "I see it as a positive move. We have a significant back book of clients, a number of which are buy-to-lets, so it will give us more choice when looking at options.
"We do also have a number of buy-to-let lenders allowing product switches and paying brokers for arranging them at the end of their rate period, so there is competition in this area of the market already."
Lincoln Brown, managing director at Suffolk-based Larkbridge Mortgages, added: “I think it is an attractive offer. The rates are slightly higher that others but they are 75 per cent, so you are aiming for slightly higher lending.
“There will be fees, but what they have done is find a niche in the market that the Prudential Regulation Authority allows and have gone for it.”
simon.allin@ft.com
