View more on these topics

Hinckley & Rugby launches five-year fix with lower rate in final years

Mortgage-House-Coins-Wallet-House-700x450.jpg

Hinckley & Rugby Building Society has launched a five-year 95 per cent LTV mortgage with an interest rate which drops for the final two years.

The rate starts at 3.8 per cent for three years, then drops to 2.79 per cent for the final two.

Fees are £199 on application and £800 on completion. There is a free valuation on properties worth up to £1m.

The product is exclusive to the First Complete and Pink networks and has been designed to reflect the fall in LTV on a repayment mortgage.

Hinckley & Rugby head of intermediary sales Carolyn Thornley-Yates says: “It seemed a shame to us that people fixing for five years do not get to take advantage of capital reduction and the potential for house price appreciation like people on shorter term products do.

“This is particularly relevant at 95 per cent LTV, as the incremental difference between that and 90 per cent pricing is often much greater than, say, 85 and 90 per cent.

“Shorter fixes give the opportunity to fix again at a better rate. So, we created this new mortgage to have that interest reduction built-in whilst still giving homebuyers the certainty that they know what their monthly repayments will be for the full five years.”

First Complete and Pink mortgage manager Karen Hedges says: “This new, innovative product from Hinckley & Rugby will greatly appeal to borrowers, who not only want the peace of mind offered by a five-year fixed rate product, but are also looking for a guaranteed rate reduction in four to five years’ time.”

Recommended

calc

Hinckley & Rugby to stress BTL at 5.5% and 145%

Hinckley & Rugby Building Society will increase its buy-to-let interest cover ratios from 135 per cent to 145 per cent from New Year’s Day. New applications will be stressed at 5.5 per cent, rather than the current figure of pay rate plus 2 per cent. The move follows upcoming requirements from the Prudential Regulatory Authority […]

Whittaker_David_2015

Buy-to-Let Watch: Doing nothing is not an option

The PRA’s expectation that mainstream lenders will adopt a specialist underwriting approach raises many questions Lenders have said very little publicly about how they intend to implement the PRA’s new underwriting principles and expectations regarding portfolio landlords. The PRA says portfolio landlords ‘have four or more mortgaged buy-to-let properties across all lenders in aggregate’. It […]

Chris White - Hinckley

Mortgage advances at Hinckley and Rugby up 34%

Hinckley and Rugby Building Society advanced 34 per cent more mortgages in 2016 compared to the previous 12 months. Advances for 2016 have totalled £172m to date, up from £128m for the previous 12 months, according to figures released by the society. Applications were also up considerably with a 46 per cent rise to £190m […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]