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

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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