Ipswich BS introduces shared ownership remortgage

The new shared ownership remortgage product will give existing shared ownership borrowers the choice to remortgage their property and also to ‘staircase’; increase their borrowing to enlarge their share in the property.

Ipswich Building Society has continued to evolve its mortgage range with the introduction of a brand new shared ownership remortgage option available to direct applicants and intermediaries.

In addition, Ipswich Building Society is reducing the minimum share across all of its shared ownership products from 40% to 25%, to help cater to buyers with a smaller deposit or those wishing to buy a smaller share of a property.

This new deal is designed to support diversity in the shared ownership market where there are limited options for borrowers seeking to remortgage.

Both products have no completion fee and no CHAPS fee.

The products are; a 2 year discount product at SVR (currently 5.24%), with a discount of 1.85% for two years from completion giving a current pay rate of 3.39%, with a maximum LTV of 95% of the share and a £199 application fee; and a 2 year fix at 3.89%, fixed until 31 January 2020 with a maximum LTV of 95% of the share and £199 application fee.

Key Takeaways:

They are hoping to create a product to help people gain entry easier
Unlike US models, UK schemes require 40% down but Ipswich is lowering that burden to 25% down.
The minimum borrowed will be 100,000 GBP which should also help with the first time owne.

“These new products, combined with our personal approach to underwriting, allow us to offer borrowers more choice while retaining a diligent approach to lending.”