The new mortgage, which is not part of the Government’s Help to Buy II scheme, is available both to direct customers and also via brokers. It comes with competitive fees - £295 for arrangment and £695 on completion.
There is a free valuation and, like all Hinckley and Rugby mortgages, there are no Early Repayment Charges. The 5.09% interest rate is a 0.55% discount off the Society’s Standard Variable Rate. The overall cost for comparison is 5.7%.
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:
“This 95% LTV mortgage is not part of the Government’s Help to Buy scheme, as we have our own insurance that covers us as a business when lending over 80% LTV.
“This 95% LTV mortgage will particularly help people buy their first home, but is equally appealing for anyone with a modest deposit who is looking for a good rate.”
