Hinckley & Rugby launches new five year fix

Hinckley & Rugby launches new five year fix
We’re extremely excited to be able to offer this exclusive product to the network and feel confident that both our brokers and their clients will greatly benefit from this offering

Hinckley & Rugby Building Society has announced today that it has launched a new five-year fixed rate at 95% LTV which sees the interest rate drop for the final two years of the fix.

The exclusive product, available via brokers in the First Complete and Pink networks, has been created to reflect the fall in LTV on a repayment mortgage.

Hinckley & Rugby head of intermediary sales Carolyn Thornley-Yates said: “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.”

The new mortgage’s initial charge rate is a competitive 3.8 per cent for the first three years and then 2.79 per cent for years four and five. Fees are £199 on application and £800 on completion. There is a free valuation on properties worth up to £1million.


As an example, for a loan amount of £150,000 over 25 years the monthly payment would drop from £775.28 in the first three years to £702.92 in the final two years of the fixed rate product.

Karen Hedges, First Complete and Pink's mortgage manager, said: “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.

We’re extremely excited to be able to offer this exclusive product to the network and feel confident that both our brokers and their clients will greatly benefit from this offering.”

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Latest Comments

warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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SecomTech
SecomTech 04 Apr 2017

...and not one mention of the rules on PERMITTED DEVELOPMENT!!! Unless you have studied the plans you will not know...It's probable a high proportion would not need planning permission...BUILDING Control...

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Jonathan
Jonathan 03 Apr 2017

That's a very interesting study indeed. There is no doubt that new services and web apps such as Wonego.com in the UK or Roomster in the US will change the way people look for a flatmate, and that tenants...

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MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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