As well as having a competitive rate, the three-year re-mortgage is one of only a few genuinely fee-free deals currently available to UK borrowers. There is no arrangement fee, no application fee, no compulsory insurance and legal fees are paid (or £250 cashback). This is in contrast to other lenders who offer remortgages that pay the borrower’s legal and/or surveying costs, but apply charges that are added to the loan at completion.
Paul Winter, Sales and Marketing Director of Ipswich Building Society, said: “Our new fee-free product is precisely what it claims to be - totally fee-free. It has no smoke-and-mirror devices. This is something that cannot be said about other ‘fee-free’ products. Consumers could have a ‘fee-free’ mortgage with some lenders and end up paying charges equivalent to an extra half percent on the interest rate in the first year.”
Interest is charged on a daily basis. Maximum LTV is 80%. The fixed period runs until October 31, 2007.
At the same time as launching the fee free deal, Ipswich is offering a new 5.95% (6.5%APR) three-year fix with a maximum LTV of 95% and a new 5.75% (6.5%APR) three-year fix with a maximum LTV of 80%. Both are fixed until October 31, 2007 and available for purchase and remortgage.
On all three products the maximum loan size is £350,000 and a 3% early repayment charge applies during the fixed period. The Ipswich allows borrowers to reduce their balance to 50% of the original loan without incurring the early repayment charge. There are no extended tie-ins.
