The Ipswich Building Society has launched a new self-build two-year discount mortgage product, with a ‘reducing early repayment charge’ feature.
Available for new builds, conversions and those undertaking a knock down and rebuild project – for both purchase and remortgage applicants – the new product is at the Society’s Standard Variable Rate, currently 5.49%, with a discount of 1.39% giving a current pay rate of 4.10% for two years from completion.
A completion fee of £1000 applies and loans are available up to 80% LTV, with a maximum loan of £500,000. An application fee of £199, CHAPs fee of £35 and a tiered valuation fee – based on final build value – apply.
The product features a 50% fee free overpayment facility, whereby borrowers can overpay penalty free by up to 50% of the original loan amount. An Early Repayment Charge (ERC) of 3% applies for the first 12 months, reducing to zero for the remaining 12 months – marking a change from a previous ERC of 3% for the full two-year period.
On completion of the self-build project, subject to meeting qualifying criteria, borrowers can switch penalty-free to one of the society’s non self-build loyalty products.
Richard Norrington, Ipswich Building Society chief executive, said: “We’re keen to continue supporting self-build borrowers, a typically under-served element of the mortgage market, by lowering costs and providing attractive rates with penalty-free switching and early repayment options.
“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, those who are often overlooked by other lenders because they do not meet ‘standard’ criteria for lending.”