Hinckley & Rugby Building Society has launched a new 95% LTV two-year discount mortgage at 5.09%.

The new mortgage, which is not part of the Government’s Help to Buy II scheme, is available both to direct customers and also via brokers.

It comes with fees of £295 for arrangment and £695 on completion.

There is a free valuation and, like all Hinckley And Rugby mortgages, there are no Early Repayment Charges (ERCs). The 5.09% interest rate is a 0.55% discount off the Society’s Standard Variable Rate. The overall cost for comparison is 5.7%.

Hinckley & Rugby chief executive Chris White said: “This 95% LTV mortgage is not part of the Government’s Help to Buy scheme, as we have our own insurance that covers us as a business when lending over 80% LTV.

“This 95% LTV mortgage will particularly help people buy their first home, but is equally appealing for anyone with a modest deposit who is looking for a good rate.”