Ipswich Building Society has launched a new remortgage product as part of a revamp of its share ownership range.
The remortgage deal will allow borrowers to ‘staircase’ their product – in other words, to increase their borrowing to enlarge their share in the property.
As part of this overhaul, Ipswich BS is reducing the minimum share across all its shared ownership products from 40 to 25 per cent, to help those with smaller deposits.
However, a minimum loan size of £100,000 will apply where the share is less than 40 per cent.
These new mortgage options will include a two-year discounted rate, which will offer a 1.85 per cent discount off the SVR (while will rise to 5.49 per cent on 2 January). This deal has a maximum LTV of 95 per cent of the share, and a £199 application fee.
Ipswich also offers a two-year fixed rate product at 3.89 per cent, fixed until 31 January 2020. This has the same LTV and fee as the discounted deal.
These will be available to both direct customers and intermediaries.
The building society said it hoped these changes would increase choice for borrowers in this market, where there are often limited options for those coming to the end of a mortgage deal.
These new products will be available for purchases as well as remortgages, and the maximum that can be borrowed is £350,000. The building society offers a free valuation and fee assisted legals for remortgage applicants, who are not increasing their borrowing. Products also benefit from the Ipswich BS’s 50 per cent overpayment facility – where there is no charge for payments and redemptions up to this limit.
Ipswich BS chief executive Richard Norrington says: “Our new shared ownership remortgage product is a diverse addition to the mortgage marketplace, and provides an option for existing borrowers who are looking to change their shared ownership deal.
“Reducing the minimum share on our wider shared ownership range will also help make this avenue more accessible for borrowers currently finding it difficult to get on the property ladder.”