"We are working hard to process the backlog of applications and will be actively looking to relaunch as soon as we can prudently do so."
Ipswich Building Society has withdrawn its 90% LTV discount mortgage and its fixed rate holiday let products due to 'overwhelming demand'.
The Society withdrew its 90% LTV fixed rate products earlier this month, but had continued to offer its discount mortgage for purchase and remortgage cases.
For purchase applications, the Society’s 75% LTV fixed and discount products remain available, rising to 80% for remortgage cases.
The Society is also withdrawing its expat buy-to-let two-year fixed deal at 3.00% alongside its two, three and five-year fixed rate holiday let products.
Ipswich says the news that the UK can re-open for domestic holidays from the 4th July has prompted an increased interest in the holiday let market, and the Society therefore also needs to stem the inflow of product applications in this area.
A two-year discount option is still available up to 80% LTV for both purchase and remortgage.
The Society will accept DIPs until the close of business today on any of the withdrawn products.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.
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 have been closely monitoring our business levels and, even following previous product withdrawals, have continued to see a high volume of applications across our product range. Therefore, following overwhelming demand for our 90% LTV range, we are reluctantly now withdrawing from this market. We are working hard to process the backlog of applications and will be actively looking to relaunch as soon as we can prudently do so.
“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.”