View more on these topics

Ipswich on to right track

Ipswich Building Society

Base Rate Tracker

Type: Discounted-rate tracker mortgage

Discounted term: Until May 31, 2007

Discount: 1%

Payable rate: 4.75%

Tracker term: Lifetime of loan

Tracker rate: 1% above Bank of England base rate
Minimum loan: 25,000

Maximum loan: Up to 95% of valuation subject to a maximum of 350,000

Income multiples: Existing borrowers up to 3.75 times principal income or three times joint, new borrowers up to 95% of valuation up to 3.25 times principal income plus second or 2.6 times joint, up to 75% of valuation – up to 3.5 times principal income plus second or 2.75 times joint

Arrangement fee: 495 plus 50 application fee
Conditions: Capital repayments of up to 50% allowed without penalty within tracker term

Redemption fee: 3% of amount repaid if mortgage is redeemed or reduced to half the original amount
Introducers fee: 0.4% of original loan

Tel: 0845 230 9696

Ipswich Building Societys base rate tracker mortgage is available for loans up to 95 per cent of valuation up to a maximum of 350,000.

Highclere Financial Services partner Alan Lakey thinks this is a good solid offer which is likely to prove a winner. He says: “This is simple to understand and accessible up to 95 per cent of the property value. After the two years tracking, the loan reverts to the standard tracker rate of Bank base plus 1 per cent.”

Lakey likes the loans portability and daily calculation of interest. He feels the income multiples are reasonable and adds: “Unusually, Ipswich will include family tax credit within income.”

Lakey says that although there is an early redemption penalty of 3 per cent, up to 50 per cent of the borrowing can be repaid without penalty. He points out that the procuration fee of 0.4 per cent is available via the Norwich Union Mortgage Club and others.

Considering the less attractive features of the product Lakey says: “The arrangement fee is particularly high and may put off borrowers with smaller loan requirements.”

Scanning the market for possible competitors, Lakey says: “Portman and Abbey offer lower rates on their two-year trackers. However, Portman, with an annual interest calculation, may prove more expensive.” He concludes by saying the Saffron Walden Building Society also has an attractive annual calculation rate.


Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Average

Overall 8/10


Elderstreet announces 15m share offer

Elderstreet, the venture capital fund manager, has launched a C share issue to raise an additional 15m for the Elderstreet VCT.In addition to standard income tax relief, after three years, C share investors will receive a 30p return for every 1 invested. This is in addition to any other investment gains and is subject to […]

Merrill Lynch appoints European Fund manager

Gavin Corr has joined the European equity team at Merrill Lynch, where he will be managing the Merrill Lynch International Investment Funds European Fund. Corr joins from Morley Fund Management, where he built a top quartile performance record in managing UK unit trusts investing in continental Europe. Prior to Morley, Corr was with American Express […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm