The deal is fixed at 3.95 per cent until April 30, 2017 for loans up to 80 per cent of valuation to a £240,000 maximum. Its total fees are £890, comprising a £195 arrangement fee and £695 completion fee.
Incentives include a free valuation for properties valued up to £1m and free legal fees for remortgages. The common feature of capital repayments up to 10 per cent a year allowed without penalty in the fixed-rate period also applies. Exceeding this limit will result in an early redemption charge which starts at 5 per cent of the amount repaid in year one a reduces by 1 per cent each year during the fixed-rate period to 1 per cent of the amount repaid in year five. An admin fee of £150 will also be charged on early redemption.
Defaqto insight analyst for banking David Black notes that the average rate charged by five-year fixed rate mortgages at 80 per cent LTV is 4.43 per cent with a £573 fee. He regards the Hinckley & Rugby deal as a very competitive rate for a five-year fix at 80 per cent LTV.
He says: “For most mortgages it is bettered only by two direct only deals – Leeds Building Society at 3.79 per cent, which has a slightly higher fee at £999, and Market Harborough at 3.99 per cent with a £245 fee.
“To get that rate from the Leeds you have to take out its buildings and contents insurance, otherwise the rate is hiked by 0.24 per cent. The Hinckley’s mortgage is available direct or through intermediaries and includes a free property valuation on a property worth up to £1m. Market Harborough’s mortgage includes valuation and legal incentives.
‘Depending upon the property value, those seeking a remortgage might also want to look at the Monmouthshire’s 4.08 per cent fixed rate which has no arrangement fee and offers legal and valuation incentives.