Ipswich launches range of self-build mortgages

Ipswich launches range of self-build mortgages

Ipswich Building Society has launched a new range of self-build mortgages.

The products have a two-year discount and a reducing early repayment charge.

Available for new builds and conversions as well as borrowers looking to knock down and rebuild a project, both purchase and remortgage customers are eligible.

Richard Norrington, chief executive at Ipswich Building Society, said: "We’re keen to continue supporting self-build borrowers, a typically under-served part of the mortgage market.

"Our manual approach to mortgage underwriting allows us to remain flexible in offering innovative products to some of the UK’s so-called mortgage misfits, who are often overlooked by other lenders because they do not meet ‘standard’ criteria for lending."

The product is at the lender’s standard variable rate of 5.49 per cent but comes with a discount of 1.39 per cent for two years from completion, making the effective interest rate 4.1 per cent.

Loans are available up to a value of £500,000 and up to an 80 per cent loan to value. There is a £1,000 completion fee and £199 application fee as well as a CHAPs fee of £35 and tiered valuation fee based on the final build value.

Borrowers will have access to a 50 per cent fee-free overpayment facility, allowing them to overpay without penalty up to half of the original loan amount. An early repayment charge of 3 per cent applies for the first year, falling to zero for the second 12 months.

After borrowers have completed their self-build project they will have the option to switch to an alternative product without penalty.