Hinckley & Rugby Building Society has launched a new cashback mortgage with no completion fee.
The new residential mortgage is a two-year fix which gives the borrower £500 cashback. There is a £199 application fee but zero fee on completion.
The fixed interest rate is 2.55% and the mortgage is available at up to 90% loan-to-value (LTV) with an annual percentage rate of 5.1%.
It marks the first time Hinckley & Rugby has offered a cashback mortgage this century and provides a tax-free £500 when the house purchase is complete.
“Whether it’s to pay for removal costs or to finance a start on decorating a house to make it your home, buyers will always find a good use for £500 when they move in,” said Carolyn Thornley-Yates, head of sales and marketing at Hinckley & Rugby.
“Our borrowers are free to do whatever they want with the money. And because they also have the certainty of what their monthly repayments will be for two years, this new cashback mortgage should particularly appeal to first-time buyers after they’ve paid their deposit.”
She said that applicants and their broker, if they are using one, will also benefit from Hinckley’s one-to-one service and its manual underwriting which considered the circumstances of each applicant without credit scoring.