Ipswich Building Society has launched three five-year fixed rates aimed at residential, buy-to-let and shared ownership borrowers.
The lender is offering a 2.82 per cent fix up to 90 per cent loan-to-value (LTV) for residential purchase and remortgage, which comes with a completion fee of £800, a £199 application fee and has a maximum loan size of £500,000.
A buy-to-let rate for purchase and remortgage is available at 3.27 per cent, with a maximum LTV of 75 per cent, a completion fee of £1,300, a £199 application fee and a maximum loan size of £500,000.
Richard Norrington, chief executive of Ipswich Building Society, said: “We are constantly innovating and reviewing our mortgage offer to ensure we are offering variety in the market, while maintaining a diligent approach to lending.
“We are committed to seeing diversity in mortgage lending and our personal approach to underwriting will allow us to offer choice to those so-called mortgage misfits who are creditworthy individuals overlooked by high-street lenders.”
Shared ownership buyers can take out a five-year fix at 4.75 per cent up to 95 per cent, with no completion fee and a maximum loan size of £350,000.
Fee-assisted legals are available for residential and buy-to-let remortgage applicants, along with a free valuation up to a maximum property value of £1m.
The products also benefit from the society’s 50 per cent fee-free overpayment facility, which allows borrowers to repay without penalty up to 50 per cent of their original loan amount during the five-year fixed rate period.
With many commentators predicting the Bank of England’s Monetary Policy Committee will raise the base rate when it convenes on 2 November, several lenders have recently updated their five-year product range.
Coventry Building Society has cut rates across its range of five-year fixed residential rates at 90 per cent loan-to-value by up to 0.16 percentage points, while the AA has unveiled a range of fee-free five-year loans.
Data from conveyancing service provider LMS showed a record number of remortgagers took out five-year fixed rates in August as borrowers looked to head off a potential rise in interest rates.
Jane King, mortgage adviser at London-based Ash-Ridge, said: “The one that stands out to me is the buy-to-let product, mainly because of the fee. Some of these fees are getting really chunky – we are talking several thousand pounds – so if you get a five-year fix with a flat fee, it is going to be market leading.
“The shared ownership is good. Most of the fixes are two or three-year, so to have a five-year is pretty good.”
Carl Shave, director at Ipswich-based Just Mortgage Brokers, added: “A more competitive selection of rates from the Ipswich Building Society will look to put them back on the radar for some potential borrowers.
“It is likely, however, that it is their personal and flexible approach to underwriting, together with their unique selling points such as the 50 per cent penalty free overpayments whist on the fixed rate, that will give them the edge over their competitors.”
simon.allin@ft.com
