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Frequently asked questions

We strive to keep our products straightforward and easy to understand and to keep terms and conditions to a minimum. However, there may be questions you want to ask that are not answered elsewhere within our website.

Here we answer some of the more frequently asked questions:

Mortgage FAQ

What if I wish to complain about my mortgage?

We aim to provide high standards of service. However, there may be occasions when you feel that you may have a complaint, if so please click here for information on our complaints policy and procedures.

What does APRC mean?

APRC stands for Annual Percentage Rate of Charge. A lender is always required to quote the APRC when advertising a loan or borrowing rate. It is a standard interest rate calculation designed to reflect the total amount of interest that will be paid over the entire period of the loan. It must also take into account charges which the borrower has to pay in order to obtain the loan and during the loan period (such as lenders fees, valuation and legal fees etc). The purpose of APRC is to help you compare the true cost of borrowing.

What is an Offset Mortgage?

Traditional savings accounts are kept separate from your mortgage. If you put them together in a Hinckley and Rugby Offset Mortgage you could save money and reduce the term of your mortgage. Making your savings work even better for you is easy – the amount of your savings is offset against your Mortgage and over the life of your mortgage we only charge you interest on the difference.

What is the difference between a Standard Variable Rate (SVR) and a Tracker Rate?

The SVR is the Variable Rate of interest at which a lender’s standard mortgage is set. Although lenders normally change their SVR as a result of The Bank of England Base Rate changing, they are not obliged to change them by the same amount. With a Tracker Rate, the mortgage tracks, by a pre-arranged amount, an independently set interest rate, such as the Bank of England Base Rate for an agreed period. The benefit of a Tracker Mortgage is that you are guaranteed that any falls in interest rates will be passed on to you, usually from the beginning of the month after the rate change. However, any rises in rates are also guaranteed to be passed on to you.

What is the difference between an Interest-Only Mortgage and a Repayment Mortgage paying capital and interest?

With an Interest-Only Mortgage your monthly payments will only cover the interest on the loan. Your payments will not pay off any of the capital that you have borrowed. You must arrange an adequate Repayment Vehicle (ie, savings plan or other form of investment) to pay off the loan at the end of the term. With a Repayment Mortgage your monthly payment will cover the interest on the loan and gradually pay off the capital you have borrowed. By the end of the agreed term you will have paid off the loan, provided all repayments are made when they fall

Will offsetting automatically reduce my monthly payments?

No, as your savings balance could vary each month your mortgage payments would also have to change each month, making budgeting complex. Because your monthly payments remain the same you are effectively overpaying on your mortgage every single month, reducing your mortgage balance and leading in turn to a reduction in the amount of interest you will be charged over the mortgage term.

Does the Hinckley & Rugby Offset Savings account offer online banking facilities?

H&R Online is our web platform that allows you to view your Offset Savings and Offset Mortgage balances online. If you pay your mortgage repayments by direct debit, you can also transfer funds to your nominated bank account. In addition, you will be able to add any other savings accounts you hold with us and view those balances too.

When your mortgage has completed you will be sent details of how to register.

Can I change the due date for my mortgage repayments?

You can choose the Direct Debit payment date from one of the following monthly options: – 8th, 15th, 22nd or the last banking day.

How can I protect myself against fraud?

Please see advice relating to fraud prevention by clicking here

What sort of things do you lend for?

The Society lends for house purchase or remortgages. If you already have a mortgage with the Society, we can also lend additional funds.

Will I be charged if I repay or redeem my mortgage earlier than the original term?

We do not currently have early repayment charges on any of our mortgage products other than our fixed-rate products. A standard Mortgage Exit Fee/Sealing Fee/Administration Fee, currently £150, is payable at redemption of all our mortgages.

Do you consider mortgages from outside of the Society’s local area?

Yes. We offer mortgages for properties in England and Wales (subject to terms and conditions).