Hinckley & Rugby Building Society has reduced the rate on its fee-free high LTV fix mortgage product.

The offering is a 95 per cent LTV five-year fee-free fix, which has been cut from 3.29 per cent to 3.10 per cent. This deal also includes £1,000 cashback.

The early repayment chargers are tiered and decline from 5 per cent in the first year to 1 per cent in the last year.

Hinckley & Rugby head of sales and marketing Carolyn Thornley-Yates says: “The combination of a reduced interest rate, cashback on completion and no fees makes this mortgage a must-look for first- time buyers.

“We are seeing increased demand for longer fixes from first timers, and the fee-free aspect is designed to help buyers who wish to put their savings towards their deposit and move into their first owned home, with £1,000 cashback to help them settle in.”