Hinckley and Rugby Building Society has launched two new fee-free high loan-to-value (LTV) mortgages.
The two-year fixed rate products are available at up to 95 and 90 per cent loan-to-value (LTV) before reverting to a discount on the standard variable rate (SVR) of 5.64 per cent.
The 95 per cent LTV mortgage charges a fixed rate at 3.39 per cent for two years and then 3.99 per cent - a 1.65 discount off the society’s SVR - while the 90 per cent LTV mortgage is fixed at 2.29 per cent before also reverting to 3.99 per cent.
Both mortgages, which are available via the society’s "privileged partners" and direct, have no early repayment charges and valuations are free up to £1m.
Hinckley and Rugby head of intermediary sales Carolyn Thornley-Yates said: “Our fixed then discount five-year products have found great appeal in the market and these fee-free versions are an outstanding innovation.
“We now have more options for borrowers with smaller deposits, as these new mortgages complement our existing range of products with fees payable but a lower charging rate.”
Nick Green, broker at Coventry-based Alternative Estates and Financial Services, said: “It is a very good rate.
"They have tighter income multiples from experience using them, but they are a smaller lender.
“The problem with rates at the moment is there is quite a lot of difference between 95 per cent deals and the rest because of the risk factor – but these are very good.”
simon.allin@ft.com
