However, the mutual will continue to offer an exclusive product for borrowers over the age of 55
Ipswich Building Society has withdrawn its later life mortgages aimed solely at borrowers over the age of 50 to give customers of all ages access to its entire standard residential offering.
The mutual, which will rebrand to Suffolk Building Society later this year, has no maximum age caps on its standard repayment residential mortgages. Interest-only products will be capped at age 95 at the end of the term.
However, the mutual will continue to offer an exclusive product for borrowers over the age of 55 — a two-year discount mortgage at 75 per cent loan to value (LTV). It has no early repayment charges and is currently priced at 2.45 per cent, discounted from the mutual’s standard variable rate of 5.24 per cent.
In line with its existing lending criteria, Ipswich Building Society will lend up to 75 per cent LTV for customers borrowing into retirement and 70 per cent LTV for those who are already retired.
As part of the product changes, part and part repayment mortgages will be introduced by the mutual.
Decisions in principle (DIP) applications for withdrawn products will be accepted till 12 May.
DIPs received before the deadline will be honoured and no deadline is set for applications that are fully packaged.
Charlotte Grimshaw, head of intermediary relations at Ipswich Building Society said: We remain absolutely committed to later life lending as we understand the challenges many older borrowers have faced in the past and continue to face today.
In many circumstances, older borrowers present a low risk to lenders because their pensionable income is stable and guaranteed and therefore, it simply makes sense that they can select from the same products as other borrowers, she said.
Grimshaw said: We know that being tied into any financial product later in life may be a concern for intermediary clients, which is why we’ve decided to retain an option for now which is specifically aimed at this group.
She said, with no early repayment charges, borrowers will have peace of mind that should they need to downsize or should their health take a downturn, they are able to pay off their mortgage with no additional costs.