Building society beats Help to Buy rates for 95% LTV

Hinckley & Rugby Building Society has cut the interest rate on its 95 per cent loan-to-value (LTV) two-year discount mortgage to less than 5 per cent.

The interest rate on the building society’s mortgage has been cut from 5.09 per cent to 4.79 per cent - less than the 4.99 per cent two-year rate offered by Santander and NatWest’s Help to Buy deals.

Not part of the government’s Help to Buy scheme, the mortgage is a 0.85 discount off the society’s standard variable rate, which it reverts to at the end of the two years and is currently 5.64 per cent.

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The overall cost for comparison is 5.6 per cent APR, with a £295 charge for arrangement and £695 on completion. There is a free valuation and no early repayment charges.

Because Hinckley & Rugby does not use automated underwriting, all lending decisions are taken by the society’s staff.

Credit scoring systems are not used, so applicants with little or no credit history will not automatically be rejected. Brokers – including directly authorised and appointed representatives – can access the society’s underwriting decision makers to discuss individual circumstances.