Ipswich launches 95% mortgage

Ipswich Building Society has joined a small handful of lenders offering 95% LTV mortgages.

The Ipswich is asking for a 5% deposit on its new two-year fixed rate mortgage, set at an interest rate of 5.75% (6% APR), fixed until 31 March 2014. The loan will then change to the Ipswich’s Standard Variable Rate (currently 5.49%).

Research from the Building Societies Association showed that 61% of those living within the society’s regional heartland of the East of England felt that raising a deposit was the biggest obstacle to buying a house. Four out of five of the society’s members live in the East of England with the remainder living across the UK.

Paul Winter, chief executive of Ipswich Building Society, said:  “We believe that everyone should have the opportunity to purchase their own homes and we understand that saving for a large deposit is not a realistic option for many. As a result, we have worked hard to ensure that our portfolio of mortgage products provides access for a wide range of home buyers and those looking to remortgage.”