One of the new two year discount mortgages is for newly built homes at up to 90% Loan to Value, at an interest rate of 3.99%. It’s a 1.65% discount off the Society’s Standard Variable Rate. The overall cost for comparison is 5.4% APR. The Society pays the premium for the higher lending insurance.
The second new two year discount mortgage is for newly built homes at up to 85% LTV, at an interest rate of 3.33%. It’s a 2.31% discount off the Society’s Standard Variable Rate. The overall cost for comparison is 5.3% APR.
The third new mortgage is a two year tracker, at up to 80% LTV, charging 2.45% interest. The rate tracks at 1.95% above Bank Base Rate for two years, with a floor of 2.45%, before reverting to the Society’s SVR. The overall cost for comparison is 5.1% APR.
All three mortgages have competitive fees - £295 for arrangment and £695 on completion. There is a free valuation and, like all Hinckley & Rugby mortgages, there are no Early Repayment Charges.
Meanwhile, the Society has cut the interest rate on its five year fixed rate mortgage to 3.35%. Available at up to 80% LTV, the five year fix has been reduced from 3.45%. The fixed rate period has been extended to November 30 2018. The overall cost for comparison is 4.6%.
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:
“Here are four great mortgages designed with buyers in mind. They are competitively priced and backed by our commitment to outstanding levels of traditional service.”