The Hinckley & Rugby Building Society is now offering an interest-only payment option across its range of residential mortgages.

The maximum loan to value (LTV) is 60% for purely interest-only, or up to 80% LTV for a part interest-only and part repayment combination.

There is no minimum income required, and the only acceptable repayment vehicle will be the sale of another property or properties in England or Wales in the same name as the applicant(s). There must be sufficient equity in that property to repay the new loan.

Carolyn Thornley-Yates, the Society’s head of intermediary sales, said: “For borrowers who already have sufficient equity in an existing property, taking out a Hinckley & Rugby mortgage is now possible on an interest-only basis.

“Our manual underwriting enables us to assess each application for any of our mortgages on an individual approach, and that will also be true of interest-only applicants.

“Interest-only will be attractive for those buyers who meet our requirements of a repayment strategy. We are pleased we can offer them our great choice of mortgage products at very competitive rates.”

The application and completion fees for the range of Hinckley & Rugby residential mortgages are the same for the interest-only or repayment options.