Suffolk Building Society

Suffolk Building Society is a regional building society based in Ipswich that lends on homes across England and Wales and takes savings from customers who bank with it in branch, by post, email or online. It is a mutual: it has no shareholders, and it exists to serve the members who save and borrow with it.

Its reputation is built less on volume than on the kinds of borrower it will look at. It describes itself as a specialist in lending to people taking a mortgage in, or into, retirement, and it also lends to the self employed, expats, self builders, and buyers of holiday let and buy to let property¹. Its mortgage range is built around fixed rates, including products for first time buyers and later life borrowers, and it does not currently offer tracker or offset mortgages². Alongside mortgages it offers savings accounts, including children's accounts and cash ISAs, through its branch network and by post³.

Mortgages from Suffolk Building Society: fixed rates for a range of borrowers

Suffolk Building Society's mortgage range is a fixed rate range. Its currently available products include fixed rates for first time buyers, later life borrowers, the self employed and others, with two year and five year fixed terms among them¹. It does not offer base rate tracker mortgages or offset mortgages at all, so anyone wanting those structures needs a different lender².

What marks the Society out is the spread of borrowers its standard products are aimed at. Its standard mortgages cover buying a home, remortgaging, moving home, and self build or property conversion⁷. Remortgaging customers may find incentives such as a free valuation and fee-assisted legal help, though the Society notes fee-assisted legals may require the use of a specified solicitor⁸. It also lends on shared ownership purchases, including new build houses and flats⁹.

Loans can be taken on a capital and interest basis, on an interest only basis, or part and part, and interest is calculated daily². Interest only and part interest only borrowing requires an evidenced repayment strategy, and the Society contacts interest only borrowers at various stages through the term so there is time to prepare for repayment¹⁰. Mortgage payments must be made by Direct Debit, and the first payment falls on the 1st of the month immediately following completion². Buildings insurance is a requirement of the mortgage².

For a wider view of how fixed rate mortgages work and what to compare, see the mortgages guide, and for the process of buying, the home buying guide.

Who can borrow: age, income, property and deposit rules

The basic entry requirements are straightforward. Borrowers must be aged 18 or over, the minimum mortgage term is 6 years and the maximum 40 years, and the Society lends on properties located across England and Wales². Buy to let terms also run between 6 and 40 years².

Where the Society differs from many high street lenders is age. It has no maximum age on mortgages taken on a capital and interest repayment basis, or on its interest only mortgages, and most of its schemes have no maximum age limit¹¹. Its later life pages state that all its products are available whatever your age¹¹. There are two qualifications: its Joint Borrower Sole Proprietor mortgages do have some age caps, and all applicants aged over 75 at the time of application must seek independent legal advice as a condition of the offer, after the offer is made but before funds are released¹¹. Older borrowers can use multiple income sources for affordability, including earned income, pension income, self employed income, rental income and uncrystallised assets such as investment and pension pots, and a pension does not have to be in payment to be considered¹².

Self employed applicants need two years of available accounts for the standard residential mortgages¹³. Gifted deposits are usually accepted on standard residential mortgages from close family members, meaning parents, grandparents, brothers or sisters, subject to criteria¹⁴. Where the deposit is partly gifted, the mortgage can go up to 90% loan to value; where the full amount is gifted it can go to 95% loan to value, but the Society then also requires evidence of 12 months of continuous rental history from the applicant¹⁴.

On the property side, the Society lends on all freehold properties except flats and maisonettes, on leasehold properties with at least 85 years left on the lease at the start of the mortgage, and on new build flats up to 90% loan to value². Right to Buy and Right to Acquire applications are considered, with the maximum loan to value calculated at 80% of the property's open market value, and are available on all products except specialist remortgage products, buy to let and shared ownership². Borrowing for capital raising, such as buying a second home or gifting funds to children, is usually considered providing the total loan does not exceed 95% loan to value². The Society does not offer guarantor mortgages and does not currently offer Retirement Interest Only mortgages².

Buy to let, holiday let and expat mortgages

Suffolk Building Society lends on buy to let and holiday let property, and to expats, and these products sit alongside its residential range rather than being a side business. Its buy to let and holiday let landlords must own a maximum of 3 properties within their rental portfolio and must not be operating as a company¹⁵. Certain minimum age restrictions may apply for these mortgage types, so the specific product criteria need checking¹⁵. Debt consolidation is not permitted on buy to let, holiday let or joint borrower sole proprietor applications².

For holiday lets, the Society's holiday home mortgages are currently only for applicants who currently own, or have previously owned, their own home, and for existing holiday let or buy to let landlords the minimum age is 18¹⁶.

For expats, the Society's expat buy to let mortgages take a distinctive approach to affordability: it calculates affordability based on rental cover, not income, so applicants can be paid in a foreign income¹⁷. It will also consider applications where the deposit has been built up in a foreign currency, as long as it is held in the UK or in the applicant's country of residence¹⁷. Expat residential mortgages are also part of the range, and the Society's full product list includes residential, expat, buy to let, self build and holiday let products available whatever the borrower's age¹².

Self build and unusual construction

Self build is one of the Society's specialist areas. It may be able to help with new projects, renovations, conversions and knock down and rebuilds, on its self build products only². Full costings must be provided, and the Society offers a self build budget planner to help applicants put them together¹⁸.

The construction range is wider than many lenders will entertain. The Society can consider a range of construction types, including modern methods of construction (known as MMC), although for some build types the scheme must be BOPAS registered, a standard that gives lenders confidence in non-traditional building methods¹⁸. This matters because self builders using timber frame, modular or other non-standard approaches often find mainstream lenders refuse the build outright; a lender that assesses construction types individually is the exception rather than the rule.

Suffolk Building Society is not alone in this market. The Building Societies Association lists a number of societies that provide finance for self and custom build projects, including Scottish Building Society, Swansea Building Society, Mansfield Building Society, Buckinghamshire Building Society, Beverley Building Society, Loughborough Building Society, Hanley Economic Building Society, Chorley Building Society, Darlington Building Society and Dudley Building Society¹⁹. Anyone considering a self build can compare what these lenders offer alongside the mainstream banks.

How the fees and early repayment charges work

Suffolk Building Society does not publish a single flat fee structure, because its charges depend on the product and the type of application, and its product pages carry the current figures for each deal. What is consistent is how the charges behave.

Early repayment charges (ERCs) are the main cost to understand. Each fixed rate product carries an ERC that applies for the length of the fixed period, and if you redeem the mortgage before the product's expiry date, or overpay by more than the product's allowance, the charge is payable²⁰. If the mortgage is repaid in full during the product period, the full ERC based on the original balance applies¹⁵. The charge is a percentage of the loan, and the percentage and duration vary by product, so the figure to check on any offer is how long the ERC window runs and what percentage applies. One important exception: where a loan is redeemed as a result of the death of a borrower, there is no early repayment penalty².

Overpayments are allowed within limits. Most products let you overpay up to a certain amount each year without triggering an ERC, and the Society advises checking your most recent mortgage offer or contacting it to confirm your allowance²¹. A lump sum overpayment of £2,000 or above gives you the option to reduce your mortgage term or reduce your monthly payments².

Other charges work as follows. Products may carry a completion fee, and remortgage products may include a free valuation and fee-assisted legal services⁸. If a loan exceeds 80% loan to value, the Society takes out a mortgage indemnity policy, and the cost of that policy is charged to the borrower on a per £100 basis, with the rate depending on the loan to value band². If you port your existing product to a new property, the product must have at least 6 months left to run; if it has less, you select a new product from the loyalty range and the early repayment charge is waived². For today's fee figures on any specific product, the Society's own product pages are the source to check.

Applying: a person reviews every application, not a credit score

The Society's underwriting is deliberately manual. Its underwriting team reviews every application individually, and it states that it does not base its decisions on your credit score¹². Its self employed page puts the same point another way: applications are considered on an individual basis by experts rather than computers¹³. The Society is careful not to promise lending to everyone, but says it will consider most applications on an individual basis²².

This is the practical difference between a regional building society and a large bank with automated decisioning. A computerised system scores an application against fixed rules and can only say yes or no; a human underwriter can look at a self employed applicant whose accounts tell a more complicated story, a retired borrower with several income sources, or an expat paid in a foreign currency, and weigh the whole picture. That is why the Society's specialist ranges exist at all.

The process starts with getting in touch, after which the Society books an appointment with one of its mortgage advisers and tells you what information to prepare¹⁵. The adviser can provide the service by telephone or in one of the branches, and there are no fees for the Society's mortgage advice². One limit on that advice: the Society can only advise on its own current range and cannot offer advice on other lenders and their products¹⁵. A credit check and an affordability assessment of income and financial commitments are still part of the process, as they are with any mortgage lender²³.

For background on how lenders assess applications generally, see the credit scores guide.

Switching deals when your product ends

When a fixed rate product ends, a borrower with Suffolk Building Society does not need to remortgage elsewhere to get a new deal. The Society offers exclusive follow-on deals for existing borrowers, and moving to one is usually termed a product switch rather than a remortgage⁸. For borrowers who choose one of its special follow-on rates, the Society is usually able to move them onto the new rate in line with the expiry of the current product¹.

The Society has signed the Mortgage Charter, under which it writes to eligible customers approaching the end of their current mortgage product three months in advance²⁴. From there the process is:

1. Review the options the Society sends you, and decide whether to switch right away or wait until your product matures²⁵.
2. Choose between an execution only switch, where you pick the product yourself, or an advised service²⁵.
3. Complete the switch request form.
4. Receive the offer and return it signed through DocuSign; if there are fees due and you want to pay them upfront, the Society contacts you to collect them by phone²⁵.
5. Receive confirmation 10 days before the new product takes effect²⁵.

No solicitor is needed: the Society confirms that switching your mortgage product with it does not require the services of a solicitor²⁰. You can change your mind as many times as you like, up to 10 working days before the new product is due to start²⁴.

The stages of switching to a new Suffolk Building Society product, and when each happens.

One protection point worth knowing before choosing the execution only route: if you proceed on an execution only basis, you waive any rights of protection under the Financial Services Compensation Scheme that would otherwise have been available under the advised service, and the scheme does not apply to buy to let mortgages in any case². If you do nothing at all when your deal ends, you will not be left in the dark, since the Society writes three months ahead, but you will simply move onto a follow-on arrangement rather than a product you chose²⁴.

Savings accounts and how to manage them

Suffolk Building Society offers a range of savings accounts, including notice accounts, children's savings accounts and cash ISAs. Savings accounts can be opened in branch, by post, email or online, depending on the account you choose³. Many accounts can be opened in joint names, though this excludes tax free ISA accounts³. New customers need proof of identity when opening an account, and existing members may also be asked for identification if the Society does not hold all the information it needs on its records³.

The children's savings accounts are currently available to open in branch or by post, with completed application forms posted to the Society's Ipswich head office²⁷. Some accounts, such as its 120 Day Notice Account, are managed in branch or by post, and can be opened by completing the application form in a branch with cash or a cheque, or by post with an opening cheque⁶. The Society also states plainly that it does not offer Stocks and Shares ISAs, so its ISA range is cash only, and it cannot offer specific investment advice²⁸.

For how savings accounts work generally, including notice periods, interest and tax, see the savings guide, and for ISAs, the ISA guide.

What happens to accounts and mortgages when a member dies

The Society has a defined bereavement process, and it is worth family members knowing the shape of it in advance.

For savings held in a sole name, the Society requires that all accounts of the deceased are closed, and all membership rights cease and are not transferable²⁹. Funds in a joint account pass automatically to the surviving account holder under survivorship rules²⁹. Where an account has multiple holders, voting rights transfer to the account holder who has been a member for the longest period²⁹. The paperwork depends on the balance: for total balances between £250 and £25,000, a Letter of Indemnity witnessed by a solicitor or notary public is needed regardless of your relationship to the deceased²⁹. Where withdrawal restrictions apply, the Society provides a penalty-free access period of 60 days from registration of the death, which matters where a balance needs to be moved to stay within the FSCS compensation limit²⁹. Funds can be sent by CHAPS to a nominated current account for a fee, deductible from the amount sent²⁹.

For mortgages, the position depends on how the account is held. Where the mortgage is in joint names, the name of the deceased is removed, and the mortgage continues in the names of the remaining parties with the existing terms, interest rate and required monthly payment³⁰. Where the deceased held the mortgage in their sole name, the mortgage will need to be settled eventually, and interest continues to be charged, so the balance increases if no payments are made³⁰. The Society suspends payments on the account for 12 months and requires no further mortgage contributions during that period, and payments from estate funds are welcome if the family wishes to make them³⁰. The Society is happy to liaise with your solicitor on your behalf³⁰. As noted above, a loan redeemed as a result of the death of a borrower carries no early repayment penalty².

For interest only borrowers, the Society contacts borrowers at various stages throughout the mortgage term to allow time to prepare for repayment, and borrowers can keep it up to date with their repayment strategy by completing a form on its repayment page¹⁰.

Scam refunds, complaints and FSCS protection

Suffolk Building Society is a member of the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme, which protects eligible money held with the Society⁶. Because it is a single building society, money held across all its accounts counts together towards one protection limit.

On fraud, the Society has signed up to the rules ensuring that members who fall victim to an APP scam have their money refunded, and it aims in most cases to refund within 5 business days, or up to 35 business days where extra information is needed³¹. If you think you have been scammed, speak to a member of branch staff immediately or contact the Member Support Centre³¹. The Society's fraud guidance is clear about what it will never do: it will never call, email or text asking you to move your money to a safe account or give passwords or memorable words, and no employee will ever ask for your password³². FSCS's own advice is to speak to your bank, building society or credit union, which can protect and reimburse victims of certain types of fraud, and to report to Action Fraud at www.actionfraud.police.uk³³.

To make a complaint, start with the Society itself, in a branch or through the Member Support Centre; a leaflet explaining its complaints process is available on request⁶. If you are not satisfied with its final response, or eight weeks pass without one, you can take the complaint to the Financial Ombudsman Service, which is free and independent. Complaints about the Society's advised mortgage service may also engage FSCS protection, which is one reason the advised route carries rights that the execution only route does not¹⁵. For the wider rules, see the consumer protection guide and the scams and fraud guide.