Fixed Rate  

Ipswich targets ‘mortgage misfits’ with 2-year fixes

Ipswich targets ‘mortgage misfits’ with 2-year fixes

Ipswich has refreshed its range of two-year fixed-rate mortgages in a bid to help so-called mortgage misfits onto the property ladder.

Mortgage misfits are defined by Ipswich as people earning below the national average wage; those owning their own business, the self employed, and contractors; people who are careful with their money; single parents receiving child maintenance as a source of income or those who are approaching retirement.

The building society has launched a purchase-only residential deal with a rate of 3.45 per cent up to a maximum loan-to-value (LTV) of 95 per cent, which comes with a completion fee of £800.

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Residential customers looking to purchase or remortgage can opt for a 2.15 per cent fix up to a maximum LTV of 90 per cent, which has a completion fee of £800.

Buy-to-let borrowers looking to purchase or remortgage can take out a 3.10 per cent fix with a maximum LTV of 75 per cent and completion fee of £1,300.

Alternatively, BTL customers can choose a standard variable rate deal - currently 5.24 per cent - with a discount of 2.39 per cent, giving a pay rate of 2.85 per cent for two years from date of completion, with a maximum LTV of 75 per cent and completion fee of £1,300.

Ipswich’s usual 50 per cent fee-free overpayment facility applies to the deals, with excess payments and early redemption subject to an early repayment charge.

The new deals, which follow a roll-out of five-year fixes in May, are designed to appeal to the changing needs of borrowers and support accessibility in the mortgage marketplace - particularly for the so-called mortgage misfits who may find themselves left behind by mainstream lenders.

Richard Norrington, chief executive at Ipswich Building Society, said: “Having recently rolled out options for those wishing to fixed their mortgage for five years, with this refresh of our two-year range we are continuing to respond to the mortgage market, offering competitive products for both residential and buy-to-let lenders. 

“Direct applicants, and those using intermediaries, will receive our personalised service as standard as our manual underwriting gives a real life assessment of affordability, as opposed to a computer algorithm that may too readily rule out creditworthy individuals.”

Mike Richards, director at London-based Mortgage Concepts Associates, commented: “I have not used Ipswich, but they are not bad rates. If it is serving part of the mortgage market that is not served very well, then it is not bad.”