The Hinckley & Rugby Building Society has reduced the rates of two of its key mortgages to under 3%.
Both deals are available at up to 80% loan to value (LTV).
The two-year fixed rate mortgage now has an initial interest rate of 2.99%, a 0.26 percentage point cut from its previous rate of 3.25%.
It is fixed until March 31 2015, when the interest rate reverts to the Society’s Standard Variable Rate (SVR), currently 5.64%. The overall cost for comparison is 5.2% APR.
In addition, the two year discount mortgage is now 2.89%, also a 0.26 percentage point cut. The previous rate was 3.15%.
The two year discount also reverts to the Society’s SVR. The overall cost for comparison is 5.2% APR.
The fees remain unchanged on both mortgages. There is an arrangement fee of £195 and a completion fee of £695, and no early repayment charge. There are free valuations for property values up to £1 million.
Chris White, the Hinckley & Rugby’s chief executive, said: “These mortgages are now even more tremendous value and we look forward to helping many homebuyers.”