Ipswich Building Society improves shared ownership products, lending criteria and affordability

Great news for shared ownership clients – we’ve made a number of improvements to our shared ownership product offering.

Our criteria now offers:

  • Maximum loan size increased from £350,000 to £500,000
  • Lending now available on flats up to 10 storeys
  • Gifted deposits accepted up to 95% of the share where applicants can provide 12 months’ rental evidence, or up to 90% of the share without this

There is also a new affordability calculator for all shared ownership cases where the property is less than ten years old. This uses reduced ONS household and communication expenditure, acknowledging that newer shared ownership properties are more energy-efficient, and therefore will typically have lower running costs than older properties.

We’ve improved our products, too!

We have a new deal for applicants seeking up to 90% of the share – we’re offering a 2 year fixed rate at 3.25% until 30 June 2021. And for our existing products up to 95% of the share we’ve reduced our rates, now offering:

  • 2 Year discount rate at the Society’s Standard Variable Rate (currently 5.74%) minus 2.49%, giving a pay rate of 3.25% for two years from the completion date [previously at SVR minus 2.24%, giving a pay rate of 3.50%]
  • 2 Year fixed rate at 3.50%, fixed until 30.06.21 [previously fixed at 3.75% until 31 March 2021]

All products are available from five to 40-year terms, up to a maximum loan of £500,000, and incur no completion, application or CHAPS fees. A tiered valuation fee based on property value applies and remortgage applicants will benefit from a free valuation and fee assisted legals. Staircasing is permitted where the lease allows.

During the product period the deals offer fee-free overpayments up to 50% of the original loan amount. Overpayments in excess of 50% of the original loan amount, or early redemption, will be charged at 3%. For overpayments this charge is calculated on the overpayment amount that exceeds the 50% allowance, and for early redemption is calculated on the original loan amount.

Click here to view all shared ownership products

Have you got shared ownership clients in mind? Get in touch!

Andrew Sadler, Senior Business Development Manager
E: bdt@ibs.co.uk
T: 0330 123 1073
W: www.ipswich-intermediaries.co.uk

Don’t forget you can submit your cases to us online by registering with our panel.

*Available to all Right Mortgage Network appointed representatives, plus DA’s based in Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire.

Lending criteria and product information correct as at 12 March 2019