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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.”

simon.allin@ft.com