Hinckley & Rugby Building Society has cut the interest rates on three mortgages particularly attractive to first-time buyers.
The fee-free mortgages are available for buyers with modest deposits, with lending at up to 95% loan-to-value (LTV).
Two of the mortgages are designed to appeal to buyers who want support from the Bank of Mum and Dad. The Joint Borrower, Sole Proprietor products enable family support for buyers.
All three mortgages feature free property assessments up to a value of £1million.
The three-year fixed mortgage sees its rate cut from 3.24% to a fee-free 2.88%. After three years there is a discount rate (currently 4.49%) for two years. Early repayment charges (ERCs) step down from 3% in year one to 1% in year three.
Meanwhile, the two-year fix Joint Borrower, Sole Proprietor product has its rate cut from 3.49% to 3.29%. At the end of the fix there are three years at the discount rate – currently 49%. ERCs drop from 2% in year one to 1% in year two.
For a five-year Joint Borrower, Sole Proprietor product, the rate has been cut from 3.89% to 3.69%. ERCs fall from 5% in the first year to 1% in the fifth year.
Carolyn Thornley-Yates, head of sales and marketing at Hinckley & Rugby, comments: “Free-free mortgages at such high loan to values help first time buyers manage both their deposit and their budget as they move into their first own home.”
“We have been offering Joint Borrower Sole Proprietor mortgages since 2016 to enable parents, who already own their home, to help a son or daughter.”
“As we do not have a maximum age at term-end, these mortgages are now an option for all generations within families to back their buyers,” she concludes.