IPSWICH BUILDING SOCIETY
FEE FREE REMORTGAGE: THREE YEAR FIXED RATE
Until October 31, 2007
Up to 80% of valuation subject to a maximum of £350,000
Loans up to 80% of valuation - 3.25 times principal income plus second or 2.5 times joint,
loans up to 75% of valuation - 3.5 times principal income plus second or 2.75 times joint
Free legal fees or £250 cashback, capital repayments of up to 50% of loan allowed without penalty during fixed-rate period
3% of original loan until October 31, 2007
Subject to negotiation
Tel: 01473 342265
Ipswich Building Society's fee-free remortgage: three year fixed rate is available for loans up to 80 per cent of valuation at 5.85 per cent until October 31, 2007.
Peter Pickup IFA principal Peter Pickup feels this mortgage fits into the market extremely well. He says: “It is portable, has good competitive rates, no fees, no extended lock-in and reductions can be made without penalty.”
However, he points out that adviser remuneration is negotiable rather than stated in the literature, which he feels may not be very good for the occasional introducer. This slight negative leads Pickup to consider other negative aspects of the product. He feels the maximum loan to valuation of 80 per cent is on the low side.
Looking at likely competitors to the Ipswich mortgage Pickup suggests Nationwide's three-year fixed rate and Cheltenham & Gloucester's three-year fixed rates. Although these have higher rates, they also have a higher loan-to valuation of up to 90 per cent.
Summing up Pickup concludes: “The Ipswich mortgage could be a very easy sell, with no fuss and good rates.”
Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Poor