Hinckley & Rugby Building Society has two new mortgages for buyers of newly built houses and flats at up to 90 per cent LTV (loan-to-value).
Both are two year discounts. For new build houses and flats at up to 90 per cent LTV the discounted interest rate is 4.19 per cent. The overall cost for comparison is 5.5 per cent APR.
For new build houses and flats at up to 85 per cent LTV the discounted interest rate is 3.69 per cent. The overall cost for comparison is 5.4 per cent APR.
Both mortgages have arrangement fees of £295 and completion fees of £695. And both mortgages revert to the Society’s SVR after two years, which is currently 5.64 per cent.
The Society offers the mortgages to help buyers without compromising its cautious lending approach, because the value of the mortgage above 80 per cent LTV is insured by premiums paid by the housebuilder.
The mortgages are available for homes and flats being sold by any housebuilders who are registered with the scheme. Already signed up are Barratt, Bellway, Bloor, Bovis, Cavanna, Gleeson, Keepmoat, Linden, Miller, Strata and Yuill.
Hinckley & Rugby chief executive Chris White said: “These mortgages seek to help the buyers, the builders and our Society to work together to enable more newly built flats and houses to be bought.”
The mortgages are available through all channels. Applications for flats should be referred individually. Prospective buyers can ask their housebuilder or broker about the scheme.