In line with current activity in the mortgage market that is seeing many lenders introduce mortgage rate cuts and new product oferings, ICS Mortgages has announced significant changes of its own. The lender is introducing a rate cut alongside product enhancments designed to attract and benefit borrowers.

Rate Cuts on Fixed Mortgages

Effective from 1 June 2024, ICS Mortgages will reduce its three- and five-year fixed rates for residential mortgages by 0.50%. Although there are lower rates available from other lenders, this adjustment will position their rates more competitively in the market:

• Three-Year Fixed Rates: New rates start at 5.25%
• Five-Year Fixed Rates: New rates start at 5.00%

Here's a detailed breakdown of the updated rates based on loan-to-value (LTV) ratios:

Product Changes and Enhancements

Extended Repament Periods

ICS Mortgages will now allow repayment periods extending up to the age of 80. This is a shift from the common industry policy of requiring mortgages to be repaid by the age of 70 and ICS is the second lender in the market allowing for this. Even with this extension, the longest mortgage term is still 35 years. The enhanced repayment period will benefit those who can demonstrate their capacity to continue paying their mortgage up to this age, i.e. applicants who can show that they will have income, such as pension and rental income, to cover their repayments until they reach the age of 80.

Enhanced Offers for Public Sector Employees

In another positive move, ICS Mortgages will now allow for the basic income of public sector employees to be calcualted as three levels up their current pay scale compared to the previous allowance of two levels. This change aims to provide more borrowing capacity to these applicants.

Eased Proven Repayment Ability Criteria

The lender has also eased its critera for providing repayment ability:

• First time buyers are required to show evidence of proven repayment ability for six months to meet 85% of the proposed mortgage repayments.
• Second and subsequent buyers must provide evidence of proven repayment ability or six months to meet 75% of the proposed mortgage repayments.

With these rate cuts and product enhancements, ICS Mortgages is offering more competitive and flexible options for mortgage applicants. These changes align ICS with current market trends and address the evolving needs of their customers.

For more detailed information on these changes and assessment of whether they could benefit you, contact us today.