Hinckley & Rugby Building Society has cut the interest rate on its 95 per cent Loan to Value (LTV) two year discount mortgage to significantly below five per cent.
The interest rate on the mortgage has been cut from 5.09 per cent to 4.79 per cent, making it even more attractive to first time buyers and others with a smaller deposit.
Not part of the Government’s Help to Buy scheme, the mortgage is a 0.85 discount off the Society’s Standard Variable Rate (SVR), which it reverts to at the end of the two years and is currently 5.64 per cent. The overall cost for comparison is 5.6 per cent APR.
All other terms for the mortgage are unchanged. It has competitive fees – £295 for arrangement and £695 on completion. There is a free valuation and, like all Hinckley & Rugby mortgages, there are no Early Repayment Charges (ERCs).
Because Hinckley & Rugby does not use automated underwriting, all lending decisions are taken by the Society’s staff. Credit scoring systems are not used – applicants with little or no credit history will not automatically be rejected.
Brokers – including directly authorised and appointed representatives – can easily access the Society’s underwriting decision makers to discuss individual circumstances.
Hinckley & Rugby chief executive Chris White said: “First time buyers in particular are looking for 95 per cent LTV mortgages, and our two year discount is now priced even more competitively to help them achieve home ownership.”