Hinckley and Rugby Building Society

Hinckley and Rugby Building Society was founded in 1983, due to a merger between Hinckley Permanent Building Society and Rugby Provident Building Society, both of which go back to the mid-1800s. They have 12 branches and are mostly in the East Midlands.

The capped rate mortgage from Hinckley and Rugby gives you both flexibility and stability. It follows at a percentage above the Bank of England base rate; however, you prearrange an upper limit which will be in effect for three years. After that time, the standard variable rate, without a cap, will rule. You may borrow up to 80% of the value of the property (the minimum ₤25,000 and the maximum ₤300,000), and certain fees apply (arrangement, property assessment, completion, administration). There is no early repayment charge, and you may choose to employ an offset facility: Both of which can reduce the amount of interest you might pay.

The tracker rate mortgages offered by Hinckley and Rugby come in three forms: life-time tracker, the offset tracker, and the fee free. A tracker mortgage means that your interest rate follows the Bank of England base rate, plus a certain percentage. The life-time tracker follows the capped rate plan described above. The offset tracker mortgages require that you also have a current/savings account with Hinckley and Rugby. You will not earn interest on your account; however, you will only pay interest on the amount of difference between what is in your account and your monthly mortgage payment. Finally, the fee free tracker also follows at a percentage above the Bank of England base rate. This percentage is higher, to make up for the fact that no fees are charged. This can be helpful considering moving and fix-up costs.

Hinckley and Rugby offers three flexible mortgages. In general, a flexible mortgage gives you the opportunity to overpay, consequently making you eligible to underpay or to take a pay holiday. The flexible mortgages available also have other points of interest, in that they are: a 10-year discounted version, a capped tracker, an offset tracker, a lifetime tracker, and a fee free plan.

The last major category of mortgages that Hinckley and Rugby offers is standard variable rate. This rate is set by the society, and can fluctuate. In general, this rate is higher, and doesn’t charge as many fees.

Use our tools on SimplyFinance.co.uk to find the best company and product for you, keeping in mind that this article should not be interpreted as financial advice or as a recommendation by SimplyFinance to use any individual service or to invest with any company advertised or mentioned.

Lower Your Mortgage