On Friday 14 December Hinckley & Rugby Building Society is introducing a new interest only mortgage to its product offering.
The two year discount mortgage has an initial rate of 4.9% and is available up to 50% LTV.
The mortgage is a 0.65 percentage point discount off the Society’s Standard Variable Rate (SVR), currently 5.64%.
It comes with an arrangement fee of £395 and a completion fee of £695 and the latter can be added to the loan.
There are free valuations for property values up to £1 million. The minimum advance is £50,000 and the maximum is £1.25 million.
Hinckley & Rugby chief executive Chris White said: “Several very large lenders have already pulled out of interest only mortgages but we feel there is still a strong case for offering this type of product in the right circumstances.
“At the same time, we don’t have the capacity or risk appetite to fulfil the potential demand for interest only loans that might result from the largest lenders exiting the market.
“We have therefore designed a special mortgage scheme specifically for interest only lending which is generally available, subject to customers fulfilling our normal lending criteria and having an adequate mortgage repayment vehicle. We will keep the success of this scheme under careful review.”
