Hinckley & Rugby offers interest-only option

Hinckley & Rugby offers interest-only option

Hinckley & Rugby Building Society is now offering borrowers an interest-only payment option across its range of residential mortgages.

The maximum loan-to-value is 60 per cent for purely interest-only, or up to 80 per cent LTV for a part interest-only and part repayment combination.

There is no minimum income required and the only acceptable repayment vehicle will be the sale of another property or properties in England or Wales in the same name as the applicant(s). There must be sufficient equity in that property to repay the new loan.

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The society’s head of intermediary sales Carolyn Thornley-Yates said: “Our manual underwriting enables us to assess each application for any of our mortgages on an individual approach, and that will also be true of interest-only applicants.

“Interest-only will be attractive for those buyers who meet our requirements of a repayment strategy,” she added.

Products in existing range which accommodate an 80 per cent LTV:
A two-year fix charging 2.09 per cent
A five-year fix charging 2.59 per cent
A two-year discount charging 1.65 per cent
A lifetime discount charging 1.95 per cent
A lifetime tracker charging 2.89 per cent

The application and completion fees for the range of Hinckley & Rugby residential mortgages are the same for the interest-only or repayment options.

Last month, fellow building society Saffron For Intermediaries also began offering borrowers the option to repay their mortgages on an interest-only basis, across its occupational range.

The Council of Mortgage Lenders recently revealed the number of interest-only mortgages in the UK has fallen by a third since 2012, as increasing numbers of borrowers pay off their home loans early.

For more on interest-only mortgages, read our adviser guide and bank some structured CPD.