Ipswich Building Society  has marked its return to buy to let lending with two products and the launch of a transitional programme.

The Ipswich was the first lender to utilise transitional arrangements – enabling residential  borrowers to switch lenders without falling foul of post-MMR affordability assessments – and campaigned for this to be continued after the implementation of MCD. It has now announced it will accept remortgage applications from existing buy to let borrowers of other lenders, via the transitional rules based upon an interest coverage ratio of 125% of product pay rate.  This will increase options available to those looking to remortgage where they might be restricted by the new interest coverage ratio and stress rate assessments.

Richard Norrington, Chief Executive, Ipswich Building Society commented: “We continue to provide choice in the marketplace for mortgage misfits and those who may not fit a ‘one size fits all’ assessment. By employing a manual approach, with expert underwriters considering each application on individual circumstances, this new initiative will help creditworthy buy to let borrowers who may be finding it hard to remortgage away from their existing lender.”