Hinckley & Rugby Building Society has launched a new two year fixed rate mortgage for home buyers at 95% loan to value (LTV).

The deal is priced at 4.89% with fees of £295 for arrangement and £695 on completion. There is a free valuation on properties valued under £1 million and, like all Hinckley & Rugby mortgages, there are no Early Repayment Charges (ERCs).

In addition, the mutual has cut the interest rate on its three year fix available at up to 80% LTV, which is down from 2.99% to 2.69%. Fees and other terms are unchanged.

Chris White, Hinckley & Rugby chief executive, said: “The 95% LTV mortgage is designed to appeal to first time buyers and others with a small deposit who seek certainty about repayments. With relatively low fees we are confident this has strong appeal.”