Hinckley & Rugby cuts discount rates to 1.69% and 1.85%

Hinckley & Rugby Building Society, which lends throughout England & Wales, has cut the rates on a pair of two-year discount mortgages.

The two-year discount at up to 70 per cent loan-to-value (LTV) now has an interest rate of 1.69 per cent (was 1.89 per cent). The overall cost for comparison is 4.9 per cent APR.

And the two-year discount at up to 80 per cent LTV now has an interest rate of 1.85 per cent (was 2.15 per cent). The overall cost for comparison is 5.0 per cent APR. Both mortgages revert to the society’s standard variable rate after two years, which is currently 5.64 per cent.

All the society’s discount mortgages, including the two which have seen rate cuts, now have arrangement fees of £199 and completion fees of £800. The valuation is free for properties up to £1 million. The previous fees were, respectively, £295 and £695.

Hinckley & Rugby does not charge the arrangement fee until an initial assessment of the case has taken place, so customers will not lose out if the application falls at the first hurdle.

Hinckley & Rugby chief executive Chris White said: “The reduction to the arrangement fee will be appreciated by buyers. That we do not levy the fee until after the initial assessment is part of our commitment to providing modern mortgages and traditional service.”

Because Hinckley & Rugby does not use automated underwriting, all lending decisions are taken by the society’s staff. Credit scoring systems are not used – applicants with little or no credit history will not automatically be rejected.