Ipswich Building Society has improved the affordability and criteria on its shared ownership products and launched a new product for up to 90% of the share.
Ipswich Building Society has increased the maximum loan size on its shared ownership range from £350,000 to £500,000.
Gifted deposits will be accepted up to 95% of the share where applicants can provide 12 months’ rental evidence, or up to 90% of the share without this.
Ipswich has also reduced pricing on both its existing discount and fixed rates products for up to 95% of the share.
Developments also include an exclusive affordability calculator for all cases where the property is less than ten years old.
The Society will use reduced ONS household and communication expenditure, acknowledging that newer shared ownership properties are more energy-efficient, and therefore will typically have lower running costs than older properties.
Products continue to be available to direct applicants across England and Wales, and through intermediaries based in the Society’s heartland area and members of selected networks and clubs.
Two-year fixed rate at 3.25% for up to 90% of share
The Society has launched a new two-year fixed rate mortgage at 3.25% until 30 June 2021 for up to 90% of the share, with maximum 80% LTV.
Applicants are subject to the same lending criteria as the Society’s existing shared ownership mortgage range. Products are available from five to 40-year terms, up to a maximum loan of £500,000, and incur no completion, application or CHAPS fees.
During the fixed rate period the product offers fee-free overpayments up to 50 per cent of the original loan amount.
Overpayments in excess of 50 per cent of the original loan amount, or early redemption, will be charged at three per cent.
For overpayments this charge is calculated on the overpayment amount that exceeds the 50 per cent allowance. For early redemption it’s calculated on the original loan amount.
Richard Norrington, Ipswich Building Society CEO (pictured), said that shared ownership schemes have come a long way since their original introduction in the 1970s.
He added: “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.
“We’re confident that the refresh and additions to our shared ownership range will make this type of property ownership accessible to more would-be first time homeowners.”