Targeting so-called “mortgage misfits” who may find it harder to get a loan, Ipswich is offering a 3.09 per cent two-year fixed rate at 85 per cent loan-to-value.
The overall cost for comparison is 5.2 per cent annual percentage rate (APR), with an initial two-year fixed rate of 3.09 per cent until 31st October 2016, reverting to the society’s standard variable rate, which currently stands at 5.49 per cent.
The product is available directly and via intermediaries but is restricted to East Anglia and is available for purchases only.
Michelle Stevens, head of mortgage sales, commented:
“We’re committed to supporting so-called ‘mortgage misfits’ such as small business owners and the self-employed. This product demonstrates the society’s continuing ambition to offer a viable and competitive alternative to the larger banks.”
She added: “Unlike the high street banks we continue to offer borrowers the option to provide their own expenditure data rather than relying on a computer model to determine what ‘typical’ spending looks like.”
Product criteria:
- Fixed until 31st October 2016, subsequent variable rate 5.49 per cent, with an overall cost for comparison 5.2 per cent APR
- Valuation fee based on property valuation
- The product is available immediately but with limited availability
- Application fee, payable with application and non-refundable £150
- Completion fee £849
- No charge for overpayments of up to 50 per cent of original loan amount. Early repayment charge (ERC) period ends 31st October 2016
- Overpayments of 50 per cent or above the ERC is 3 per cent of the overpayment
- For redemption before March 31st 2016, the ERC is 3 per cent of the original loan amount
- Minimum loan amount: £25,000
- Maximum loan amount £500,000
