The Ipswich Building Society has resumed lending for new purchases, including 90% LTV for standard residential purchases, following the government’s guidelines allowing the housing market to resume.
Purchase cases will be welcomed from today across residential (including later life), buy-to-let (buy-to-let), self-build, expat and holiday let.
Details are as follows:
New standard residential purchase cases and remortgages will now be considered up to 90% LTV with a maximum loan size of £500k. For loans up to £750k the LTV is 80%.
Buy-to-let purchases and buy-to-let remortgage cases will also be considered up to 80% LTV. Maximum loan size is £500k.
Self build cases will be considered up to 80% LTV. Maximum loan size £750k.
Expat residential and expat buy-to-let purchase cases and remortgages will now be considered up to 80% LTV. Maximum loan size £750k.
Holiday let purchases and remortgages will be considered up to 80% LTV. Maximum loan size £500k.
Later life mortgages will be considered up to 75% LTV. Maximum loan size £750k.
Capital raising, for example to gift to family members, is available up to 50% LTV with a maximum loan size of £500k.
Lending on shared ownership and properties valued over £1m is currently being reviewed but not available at present.
As was the case prior to Covid-19, all properties must be located within England and Wales.
Evidence of income:
For furloughed employees, the Society requires evidence of entitlement and will accept 80% of salary up to £2,500 per month when assessing affordability. Additional employer contributions on top of government 80% will not be accepted.
For self employed applicants, the Society will require a minimum of two years’ finalised accounts and will assess the industry they work in and if their business has been affected by the pandemic.
Day rate contractor income will be assessed in the same way as self employed; using income declared on tax overviews and tax calculations.
Richard Norrington, CEO at Ipswich Building Society, said: “During the early stages of the restrictions associated with Covid-19, we made a series of changes to our lending criteria to reflect our capacity, the challenges around undertaking valuations, and to limit our risk exposure.
“Alongside being able to resume purchase cases, we have made other operational changes which will allow us to proceed with a broader range of applications, as well as continuing to welcome cases from intermediaries with self-employed and furloughed clients.
“Our entire industry is operating in uncharted waters at the moment but we understand how important it is to get people moving home and remortgaging again. We’re assessing the situation on a daily basis so that we are able to offer brokers the confidence and reassurance that they and their clients need. Our underwriters are ready to assess each case on a manual underwriting basis, which is incredibly important for many applicants in these financially uncertain times.”