As an increasing amount of lenders re-enter the 90% LTV market, Ipswich Building Society has unveiled a new 5-year 90% LTV product to help first-time buyers get onto the property ladder.
The new 5-year fixed rate product, priced at 3.45%, is fixed for 60 months from the date of completion.
In addition, The Ipswich has reduced the rates on two of its recently relaunched 2-year 90% LTV standard residential mortgages.
All of these products are available with a minimum loan of £25,000, a maximum of £500,000, an application fee of £199 and a completion fee of £800.
The 2-year discounted rate has been repriced from 3.50% to 2.99%, at SVR (currently 5.24%) minus 2.25%, which gives a current pay rate of 2.99% for two years from date of completion, then reverting to SVR minus 1.74% for 36 months.
The other 2-year fixed rate has been repriced from 3.75% to 3.25% until 31 March 2023, then reverting to SVR (currently 5.24%) minus 1.74% until 30 June 2026.
Richard Norrington, chief executive at Ipswich Building Society, said: “The popularity of our current two 90% LTV mortgage deals made it very clear that there’s a real need in the market to serve those applicants looking to purchase with a smaller deposit.
“Repricing these products makes them accessible to even more people, allowing us to address the industry’s pent-up demand, as well as allow more people to acquire their dream home.
“Our 5-year fixed rate deal is particularly exciting, offering a competitive rate and stability over a longer time period, which will no doubt be welcome news to borrowers in the current climate.”
This new trio of products are available to standard residential borrowers but these products are not available to applicants who are self-employed or on furlough, or to mortgage holders currently on a payment deferral with their existing lender.
Applicants who have taken a payment deferral on their existing mortgage or have been furloughed since 30 September 2020 are not eligible.
Those who were furloughed before this date must have returned to full-time work to be eligible.