95 per cent new homes mortgage from Hinckley & Rugby
Hinckley & Rugby Building Society is looking to help first-time buyers with a mortgage for new build homes in the Midlands at up to 95 per cent loan-to-value.
Designed to particularly appeal to first time buyers, the mortgages are only available for homes in the region being sold by the house builders Barratt, Bellway, Linden Homes and Miller Homes.
The two year discounted mortgage has an initial interest rate of 4.99 per cent, a discount of 0.65% off standard variable rate. The overall cost for comparison is 5.8 per cent APR. The arrangement fee is £399 and the completion fee £695.
The society is offering the mortgages to help first-time buyers without compromising its cautious lending approach, because the value of the mortgage above 80 per cent LTV is insured by premiums paid by the house builder.
Hinckley & Rugby chief executive Chris White said: “This is a partnership approach to enabling first-time buyers in particular to be able to buy new homes from developers in the Midlands. We hope to help more people buy their first homes.”