The product will follow BBR - currently 4.75% - without any additional margin until May 31, 2007, when it will revert to BBR plus 1%. The product comes with no higher lending charge up to 90%LTV.
Paul Winter, Sales and Marketing Director for Ipswich Building Society, said: “We expect this product to get high ranking from many of the best-buy tables because it offers an ultra-low rate without any smoke and mirrors. Borrowers get the low rate with a free valuation, a high LTV and no higher lending charge up to 90%LTV.”
There is a minimum advance of £25,000 and the maximum loan size is £350,000. While no higher lending fee is payable for loans up to 90%LTV, on 90%-95%LTV a higher lending charged is required for the portion of the loan over 80%. The product carries a completion fee of £495 and there are no compulsory insurances.
Interest is charged on a daily basis and there is an early repayment charge of 3% if the loan is redeemed or reduced to half the original advance before May 31, 2007.
