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

MBM Homelets
MBM Homelets 23 Mar 2017

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How is the "robust evidence" looking now?

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You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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