New fixed rates from Ipswich

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&#39s 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&#39s 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.