Ipswich Building Society has launched two buy-to-let products and three mortgages for those with poor credit ratings.
The deals include two new new five-year fixed rate product, one of which is a deal for expats looking to purchase or remortgage a UK property.
The credit repair mortgage options are fixed rate products “for borrowers wishing t have more certainty over their mortgage payments”.
These products come with differing mortgage rates depending on the level of the borrower’s credit rating. The lowest rate is a two year fixed mortgage at 3.5 per cent with fee-free overpayments of up to 50 per cent of the original loan and a three per cent early repayment charge.
The Feather Prime and Credit Recovery mortgages have a 3.75 per cent rate for two-years fixed and a 4.5 per cent rate for three-year fixed respectively.
All credit repair mortgages are available for loans from £100,000 to £350,000, and have an application fee of £199, a completion fee of £800, a Clearing House Automated Payment System (CHAPS) fee of £35 and a tiered valuation fee based on property value.
Richard Norrington, at Ipswich, said the Society has made these more accessible to borrowers with impaired credit by ensuring, for those on a debt management plan (DMP) which is being conducted satisfactorily, any county court judgement or defaults absorbed within the DMP will be ignored on proof of the instalment order.
“These new deals have been implemented to support diversity in the mortgage market where there are limited options for borrowers who may not fit the requirements of some computer-based mortgage application processes, often employed by high-street lenders,” he said.
The credit repair products continue to offer the credit repair guarantee, which pledges that borrowers who have made all payments on time over the initial fixed rate period can then transfer from the specialist product to any of its standard mortgage retention products.
The Society’s expat five-year buy-to-let fixed rate mortgage is at 4.15 per cent, with a maximum LTV of 75 per cent, and a completion fee of £1499 and application fee of £199.
There is also a buy-to-let 5-year fixed rate at 3.50 per cent until 30 September 2023 with a maximum loan-to-value (LTV) of 80 per cent.
An application fee of £199, completion fee of £1,250, CHAPS fee of £35 and tiered valuation fee based on property value apply.
The products are available for purchase and remortgage through the Society’s panel of Prestige intermediaries and via selected broker partners.
Ray Boulger, senior mortgage technical manager at John Charcol, said: "The 5 year fixed rate BTL has a very competitive interest rate for borrowers wanting from 76 per cent to 80 per cent but with rental cover being 145 per cent at 5.5 per cent Ipswich will often need to take other income into account for an 80 per cent LTV to be achievable.
"The ex pat market is not well served and so it is really good to see Ipswich offering a competitive 5 year fix up to 75 per cent LTV for this sector.
"Likewise, although the number of lenders offering credit repair mortgages has increased it is still an undeserved sector and so it is good to see Ipswich beefing up both its product range and its criteria for these mortgages.
"I particularly like its credit repair guarantee, which allows borrowers who have made all payments on time over the initial fixed rate period to transfer to any of its standard product transfer range."
