The mortgage was launched in 2012 for new build homes in the Midlands. It has proved popular with buyers and builders alike, and Hinckley & Rugby is this week extending it to the whole of England and Wales.
Designed to particularly appeal to first time buyers, the mortgages are available for homes being sold by the housebuilders Barratt, Bellway, Bloor, Bovis, Gleeson, Keepmoat, Linden, Miller and Strata and are available through selected brokers only.
The two year discounted mortgage has an initial interest rate of 4.99 per cent, a discount of 0.65% off SVR. The overall cost for comparison is 5.8 per cent APR. The arrangement fee is £395 and the completion fee £695.
The Society offers the mortgages to help first time 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.
Hinckley & Rugby chief executive Chris White said:
“This partnership approach to enabling first time buyers in particular to be able to buy new homes from developers has proved both popular and practical in the Midlands. We hope to help more people buy their first homes by extending the offer to the rest of the country.”
