The Ipswich Building Society has launched three five year fixed rate products.

Two of the new mortgages are aimed at first time buyers, as gifted deposits are accepted on both the 95% loan to value (LTV) residential and shared ownership products.

These deals are as follows:

• Residential five-year fixed at 3.40% for 60 months from date of completion:  £999 fees, 5% early repayment charge for 60 months from completion, free free overpayments up to 50% of original loan amount (4.8% APRC)

• Shared ownership five-year fixed at 3.80% for 60 months from date of completion – available up to 95% of the share: no fees, 5% early repayment charge for 60 months from completion, fee free overpayments up to 50% of original loan amount. (5.0% APRC)

The third product is Ipswich Building Society’s first five year deal for the holiday let market:

• Holiday let five-year fixed at 3.45% for 60 months from date of completion: £1,149 fees, 5% early repayment charge for 60 months from completion, fee free overpayments up to 50% of original loan amount. (5.0% APRC*)

A £35 CHAPS fee also applies to each product for the release of funds. For early redemption, a charge of 5% of the original loan is payable.

All of the new products are available to direct applicants in England and Wales and intermediaries based in the Society’s heartland area, as well as members of selected networks and clubs nationwide. The property must be located in England and Wales.

Richard Norrington, CEO at Ipswich Building Society, said: “Just a matter of weeks ago, the markets were betting on an interest rate cut due to weak economic growth. However, following Rishi Sunak’s appointment as chancellor of the exchequer and talk of a big boost to public spending in next month’s Budget, some are now predicting higher interest rates on the horizon. These sorts of conflicting reports can cause real anxiety, particularly for first time buyers who are on the brink of taking out their first mortgage.

“By committing to a five year term, borrowers will have peace of mind that they won’t need to worry about their mortgage in the short term and are protected against potential higher monthly repayments should interest rates rise. In addition, knowing that repayments are set for the next 60 months allows households to take the opportunity to budget and plan for a healthy financial future, whilst the 50% fee-free overpayment facility provides added flexibility for those wishing to pay off more of their mortgage without penalty.”