Ipswich Building Society has withdrawn its last remaining 90 per cent loan to value (LTV) mortgage product for purchase and remortgages due to a lack of other high LTV deals in the market.
The 90 per cent LTV discount mortgage with a rate of 2.79 per cent will not be available after 5pm on Tuesday 30 June.
The mutual pulled its two- and five-year fixed rate 90 per cent LTV mortgages earlier this month in a move which it said would be a temporary response to the “unprecedented demand” it received for its high LTV range.
It said even though these products had been withdrawn to help the society manage applications, it continued to see “overwhelming” interest. Ipswich will work on processing the backlog of applications and said it will aim to relaunch as soon as it can.
For purchase applications, the society’s 75 per cent LTV fixed and discount products remain available, rising to 80 per cent for remortgage cases.
Ipswich is also withdrawing its expat buy-to-let two-year fixed three per cent deal, but the two-year discount option will remain in the range, up to 80 per cent LTV for both purchase and remortgage.
Additionally, the society has pulled its two-, three- and five-year fixed holiday let mortgages following the news that domestic holidays in the UK can take place from 4 July. In response, the lender has decided to manage the flow of applications it receives in this area.
The two-year discount option is still available up to 80 per cent LTV for both purchase and remortgage.
The society will still accept decisions in principle (DIP) until the close of business on 30 June for any of the withdrawn products.
Where a DIP has already been submitted, Ipswich will continue to accept fully packaged mortgage applications from intermediaries, with no deadline.
Richard Norrington, CEO at Ipswich Building Society, said: “In recent weeks we have been active in trying to assist borrowers and intermediaries in an uncertain market, moving quickly where we can to introduce new products and improve lending criteria.
“We take great pride in our manual underwriting approach as it allows us to accept applications from borrowers who may be turned down by lenders who make decisions on an automated basis.”
“However, assessing each and every application on a case-by-case basis is inherently more time-intensive than applying a computer-based algorithm,” he added.
“Therefore, to maintain our high standards of service, and to give each application the attention it warrants, we feel this decision is in the best interests of both our direct customers and those applying via our intermediary partners.
“By staying active in the market longer than others, we are pleased we have been able to help some buyers and support the property market as a whole and look forward to returning to higher LTV lending and other areas of business when we have the capacity,” Norrington said.
Shekina is a reporter at Mortgage Solutions. She has over two years experience in the B2B publishing market, with previous industries including the pet, funeral, hospitality, retail and jewellery trades.
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