Launch Pad: Mortgages

Chris White, chief executive of Hinckley & Rugby, said: “The 95 per cent LTV mortgage is designed to appeal to first-time buyers and others with a small deposit who seek certainty about repayments.

“With relatively low fees we are confident this has strong appeal.” The two-year deal has a rate of 4.89 per cent for the first two years, at 95 per cent loan to value.

Key features:

• £295 arrangement fee and £695 fee on completion

• No early repayment charges

• Free valuation on properties valued under £1m

• Interest rate on H&R’s three-year fix cut from 2.99 per cent to 2.69 per cent, available at up to 80 per cent LTV

IFA verdict

Ruth Whitehead, IFA at Ruth Whitehead Associates, London: “It looks like a good deal, so much so I’m going to ask, ‘Where’s the catch?’ It sounds competitive but are there any geographical restrictions? Is Hinckley & Rugby going to lend my London client enough money? I expect income multiples will be quite tight and I would also like to know the lender’s underwriting criteria”