Two building societies have announced cuts to their residential mortgage rates as lender competition continues to intensify.
Hinckley & Rugby Building Society has cut the interest rate on two mortgages, while Norwich & Peterborough Building Society has launched a market-leading five-year fixed rate.
Hinckley & Rugby has cut its two-year discount mortgage to 90% LTV from 3.75% to 3.59%. The overall cost for comparison is 5.3% APR. This mortgage is not available for new build properties.
It has also cut the interest on its residential lifetime discount mortgage to 85% LTV from 3.49% to 3.39%. Overall cost for comparison is 3.5% APR.
The two deals each have a £295 arrangement fee and £695 completion fee. There is a free valuation and, like all Hinckley & Rugby mortgages, no early repayment charges.
Hinckley & Rugby doesn't use automated underwriting or credit scoring, this means that applicants with little or no credit history won't automatically be rejected, and brokers have easy access to underwriters to discuss on individual cases.
Chief executive Chris White said: “We’ve cut the interest rate on these two mortgages to make them even more attractive to buyers and remortgagers.”
Norwich & Peterborough has cut the rate on its five-year fixed rate mortgage to 2.84%, making it among the lowest on the market for loans up to 65% LTV.
Borrowers choosing also benefit from a free valuation and the choice of free legal fees or £200 cashback. The product fee is £295.
N&P product manager Richard Barker said: “This may particularly appeal to homeowners who would benefit from remortgaging but are deterred from switching to a more competitive home loan because of the additional costs the transaction can incur.”
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