Return of domestic vacations sees Ipswich BS pull holiday let product

Property Reporter
30th June 2020

Amongst other things, Saturday, July 4th will see the reopening of domestic holidays for the UK, prompting increased interest in the holiday let market.

To stem the inflow of product applications in this area, Ipswich Building Society has decided to pull its Holiday Let 2, 3 and 5 year fixed mortgages. However, the 2 Year discount option is still available up to 80% LTV for both purchase and remortgage.

The Society will still accept DIPs (Decision in Principle) until the close of business today on any of the withdrawn products. Where a DIP has already been submitted, the Society will continue to accept fully packaged mortgage applications from intermediaries, with no deadline. These changes have been communicated to intermediaries via email and the Society’s intermediary website.

Richard Norrington, CEO at Ipswich Building Society, said: “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. 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.

“As a mortgage lender, we actively want to help people get onto the property ladder, move house or remortgage and so the decisions we and other lenders are having to take at the moment are not made lightly. 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.”

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