The two-year mortgages are being offered at lower rates than the building society usually offers in its standard product range in a bid to help aspiring homeowners make their first move onto the property ladder.
Borrowers whose deposits are being gifted to them through a close family member such as a parent, grandparent, child or sibling will be able to access a 95% loan-to-value (LTV) mortgage – which means the minimum deposit they require is just 5%.
These applicants must also be able to provide 12 months’ worth of rental payment history. However, if they cannot provide this evidence, they could still be eligible for a 90% LTV mortgage, which would require a 10% deposit.
Supporting communities
Ipswich Building Society is offering these deals exclusively to customers in its heartlands of Suffolk, Norfolk, Essex, Cambridgeshire, Hertfordshire, Bedfordshire, and Buckinghamshire. They are available either direct or through mortgage intermediaries based in these counties.
Richard Norrington, CEO at Ipswich Building Society said, as a mutual organisation, it was committed to supporting its members and local communities.
“I am delighted we are able to assist first time buyers, purchasing their property in our heartland area, with these dedicated products,” he added.
The building society uses a manual underwriting process, which allows it to better understand the personal circumstances of each applicant. This means it can often lend to people who might be turned down by a provider with an automated application process.
“This manual approach can be extremely beneficial for first time buyers who may need a helping hand as they embark on an unfamiliar journey towards home ownership,” Norrington added.
The two new deals comprise a fixed-rate mortgage starting at 2.93% and a discount rate deal, which gives a pay rate of 2.73% for two years from the completion date.
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