This accompanies a range of acceptable income sources including 100% of private and state pension, maintenance payments and tax credits.
To further assist employed and self employed applicants who are paying into their pension each month, when carrying out an affordability assessment the Society will no longer deduct expenditure relating to pension contributions, whether standalone or deducted at source. This applies to capital and interest repayment mortgages and for mortgages on an interest only basis where a suitable alternative repayment strategy is in place.
All mortgage applications will be assessed on a case by case basis, underpinned by the Society’s individual underwriting which allows greater understanding of applicants’ personal circumstances and increases diversity in the mortgage market.
Commenting on the updates to the Society’s lending criteria, Richard Norrington, CEO at Ipswich Building Society said: “We recognise that borrowers’ needs are increasingly complex. We are continually looking at new ways to improve our offering and are pleased to share these changes to our lending criteria, increasing accessibility for applicants with investment income and those who are paying into their pensions.
By employing expert manual underwriting, we can assess each case individually and on its own merits, and by taking personal circumstances into account, we can get a true picture of the circumstances of each applicant rather than relying on automated computer processes and credit scoring. “