Hinckley & Rugby Building Society, which lends throughout England & Wales, has today [February 14] cut the interest rate on two of its mortgages - a fee free lifetime discount and a two year tracker mortgage.
The fee free lifetime discount at up to 80 per cent LTV (loan to value) is cut by 0.20 per cent to 2.99 per cent, a 2.65 per cent discount from the Society’s standard variable rate which is currently 5.64 per cent. The overall cost for comparison is 3.1 per cent APR.
The fee free mortgage is available as an offset with a savings account and has flexible features including a payment holiday facility and the ability to make overpayments.
The second rate cut is 0.20 per cent off the existing two year tracker mortgage at up to 90 per cent LTV, which is now charging an initial 3.69 per cent (overall cost for comparison is 5.4 per cent APR).
The mortgage tracks at 3.19 per cent above Bank of England Base Rate for two years and will not go below a floor of 3.69 per cent. All other terms are unchanged. The fees are £295 for arrangement and £695 on completion.
For both mortgages 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: “The fee-free is now below the three per cent mark and the tracker mortgage has been made even more attractive to buyers with a 10 per cent deposit who are looking for a low initial rate.”
Details of all the Society’s mortgages are at www.hrbs.co.uk
