Ipswich Building Society has amended the criteria and introduced a new product within its shared ownership range.
The lender’s new product is an 80 per cent LTV two-year fix at 3.25 per cent with a 90 per cent share. This offer has a maximum loan value of £500,000 and no completion, application or CHAPS fees.
In addition, the product has a tiered valuation fee based on property value and offers fee-free overpayments up to 50 per cent of the original loan amount – exceeding this, the ERC is set at 3 per cent.
For remortgage applicants, the offer includes free valuation and fee assisted legals.
Amendments to the lender’s existing product range include the 80 per cent LTV two-year discount product seeing its discount improved from 2.24 per cent to 2.49 per cent, giving an initial rate of 3.25 per cent.
In addition, the lender has the reduced rate on its 80 per cent two-year fixed product from 3.75 per cent to 3.50 per cent.
Regarding criteria improvements, changes include the maximum loan size being increased from £350,000 to £500,000, and reduced pricing on the lender’s discount and fixed rate products for up to 95 per cent of the share.
Furthermore, lending is now available on flats up to 10 storeys having been increased from five, and gifted deposits will be accepted up to 95 per cent of the share where applicants can provide 12 months’ rental evidence, or up to 90 per cent of the share without this.
Ipswich Building Society chief executive Richard Norrington comments: “No longer just an extension to social housing, or to help public sector workers to purchase a home, shared ownership is now just as likely to be used by young professionals in areas where property prices are beyond their reach.
“Shared ownership is often an alternative and more secure option for this group who are looking to avoid the volatility and uncertainty of the private rental market.”