Ipswich Building Society has unveiled four new fixed rate mortgages designed to build on the large sales gains it made during 2002.
The Suffolk-based mutual – which saw lending rise by more than a third last year – expects the products to fuel additional sales through intermediaries, who now account for more than 60% of the Society's lending.
The new mortgages consist of:
A fixed-rate of 4.05% until April 30 2005, available up to 80% LTV (4.80% for loans 80% to 95% LTV
A fixed-rate of 4.5% until April 30 2006, available up to 80% LTV (4.95% for loans 80% to 95% LTV).
A fixed-rate of 3.25% until April 30 2005, up to 80% LTV (3.75% loans 80% to 95% LTV).
And, a new 5.25% buy-to-let loan where the rate is fixed until April 30 2005 and available up to 80% LTV.
On all of its products Ipswich allows borrowers to reduce their loans to 50% without incurring an early redemption penalty.
On the new products there is an early redemption charge of 3% if the loan is repaid or reduced to less than 50% or the original amount. In the case of the 4.05%, two-year deal and the three-year deal this applies during the fixed rate period. For the 3.25% the early redemption charge period is to April 30 2007.
Paul Winter, sales and marketing director at Ipswich, says:”We believe that the ability of borrowers reduce the loan to 50% without an early redemption charge is most unusual and is one of the strongest selling points with intermediaries.”
The Society's new maximum loan threshold on all schemes has been increased to £350,000.
On all the new fixed products there is an arrangement fee of £250, which can be added to the loan. There is no higher lending fee charged for loans up to 90% LTV. Interest is calculated on a daily basis and all schemes are portable. There are no compulsory insurances.