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Coventry aims for more with MOREgage



Fixed rate mortgage combined with unsecured personal loan

Fixed term:
Until July 31,2009

Fixed rate:
Up to 95% of valuation plus unsecured personal loan up to 30% &#45 6.79%, up to 95% of valuation plus unsecured personal loan up to 20% &#45 6.59%, up to 95% of valuation plus unsecured personal loan up to 10% &#45 6.49%

Minimum loan:

Maximum loan:
Up to 95% of valuation plus unsecured personal loan up to 30% of valuation

Income multiples:
Up to four times principal income plus second or three times joint

Free valuation, six months&#39 free mortgage payment protection insurance, capital repayments up to 10% a year allowed without penalty

Arrangement fee:

Redemption fee:
6% of mortgage balance in years one and two, 5% in year three and four, 4% in year five, none for unsecured personal loan

Introducer&#39s fee:
Subject to negotiation:

Tel: 0845 7767825

MOREgage from Coventry Building Society is a five-year fixed-rate mortgage combined with an unsecured personal loan of up to 30% of the property valuation.

Brian Pack Financial Services proprietor Brian Pack thinks this product is ideal for first-time buyers. He points out that up to 125 per cent of valuation is available, which includes both the mortgage and personal loan elements. There are no costs for the mortgage, including no higher lending fee, which Pack regards as a valuable feature.

Pack also draws attention to other useful features of the mortgage. He says: “The early redemption penalties do not overhang the five-year fixed term and the interest rates are very fair, bearing in mind the convenience of the product.”

However, Pack draws attention to one note of caution for potential clients. He says: “The only thing to bear in mind is if you redeem the mortgage, the unsecured loan interest rate increases by 5 per cent a year.”

Pack feels Northern Rock&#39s together range could provide competition but he points out that the fairly high fees on the range are not competitive compared with the Coventry mortgage.. He concludes: “MOREgage could be a very popular product as long as he underwriting is realistic. I could advise this for most of my first-time buyers.”


Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Average

Overall 8/10


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