Hinckley & Rugby Building Society has cut the interest rate on its 95% Loan to Value (LTV) two year discount mortgage to well below 5%.

The interest rate on the mortgage has been cut from 5.09% to 4.79%.

Not part of the Government’s Help to Buy scheme, the mortgage is a 0.85 discount off the Society’s Standard Variable Rate (SVR), which it reverts to at the end of the two years and is currently 5.64%. The overall cost for comparison is 5.6% APR.

All other terms for the mortgage are unchanged. Fees are £295 for arrangement and £695 on completion. There is a free valuation and, like all Hinckley & Rugby mortgages, there are no Early Repayment Charges (ERCs).

Hinckley & Rugby chief executive Chris White said: “First time buyers in particular are looking for 95% LTV mortgages, and our two year discount is now priced even more competitively to help them achieve home ownership.”