The society will lend within England and Wales across residential (including later life), buy-to-let (BTL), self-build, expat and holiday let.  It will also lend on flats, new builds and unusual properties. 

Richard Norrington, CEO at Ipswich Building Society, commented: “During the early stages of the restrictions associated with Covid-19, we made a series of changes to our lending criteria to reflect our capacity, the challenges around undertaking valuations, and to limit our risk exposure.

“Alongside being able to resume purchase cases, we have made other operational changes which will allow us to proceed with a broader range of applications, as well as continuing to welcome cases from intermediaries with self-employed and furloughed clients.”

LTV

• New standard residential purchase cases and remortgages will now be considered up to 90% LTV with a maximum loan size of £500k. For loans up to £750k the LTV is 80%.
• BTL purchases and BTL remortgage cases will also be considered up to 80% LTV. Maximum loan size is £500k.
• Self-build cases will be considered up to 80% LTV. Maximum loan size £750k.
• Expat residential and expat BTL purchase cases and remortgages will now be considered up to 80% LTV. Maximum loan size £750k.
• Holiday let purchases and remortgages will be considered up to 80% Maximum loan size £500k.
• Later life mortgages will be considered up to 75% LTV. Maximum loan size £750k.
• Capital raising, for example to gift to family members, is available up to 50% LTV with a maximum loan size of £500k.

Lending on shared ownership and properties valued over £1 million is currently being reviewed but not available at present.

Evidence of income

For furloughed employees, the society requires evidence of entitlement and will accept 80% of salary up to £2,500 per month when assessing affordability. Additional employer contributions on top of government 80% will not be accepted.

For self-employed applicants, the society requires a minimum of two years’ finalised accounts and will assess the industry they work in and if their business has been affected by the pandemic.

Day rate contractor income will be assessed in the same way as self-employed; using income declared on tax overviews and tax calculations.

Norrington continued: “Our entire industry is operating in uncharted waters at the moment but we understand how important it is to get people moving home and remortgaging again.

“We’re assessing the situation on a daily basis so that we are able to offer brokers the confidence and reassurance that they and their clients need.

“Our underwriters are ready to assess each case on a manual underwriting basis, which is incredibly important for many applicants in these financially uncertain times.”