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Coventry deal a hit for higher LTVs

Coventry Building Society

6.65% Offset Fixed Rate

Type: Fixed-rate offset mortgage

Fixed term: Until June 30, 2011

Fixed rate: 6.65%

Minimum loan: £25,001

Maximum loan: Up to 90% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £750,000, up to 75% of valuation subject to a maximum of £1m

Income multiples: Based on affordability

Conditions: Capital repayments of up to 5% a year allowed without penalty, one free standard valuation up to £650, free legal fees for remortgages or £200 contribution towards legal costs

Flexible features: Overpayments, payment holidays of up to three months a year, interest calculated daily, offset facility

Arrangement fee: £800 plus £199 booking fee

Redemption fee: 4% of amount repaid in first three years

Introducer’s fee: Subject to negotiation

Tel: 0845 766 5522

This Coventry fixed-rate offset mortgage is available at 6.65 per cent for loans up to 90 per cent of valuation.

Unleash Advice Partnership IFA Adrian Kidd says: “The Coventry product is good for people looking at a higher LTV as some of the other rates I have seen are only lending up to 75 per cent of valuation.”

He notes that the fees are more competitive than a 90 per cent LTV product from Intelligent Finance by over £500. Coventry’s rate is also 1.2 per cent lower, which also makes it very competitive.

“The introducer fees at Coventry are lower than Intelligent Finance but it should not stop brokers recommending this offset mortgage. “ He notes that the Coventry product is also available for remortgages, which is another positive.
Discussing the less appealing features of the Coventry offset deal, Kidd says: “Capital repayments are limited to only 5 per cent a year without charge.”

He thinks the main competitive will come from Intelligent Finance’s 90 per cent LTV 6.77 per cent offset

Summing up, Kidd says: “This is a good offering on the whole but there are much better fixed rates available without the offset functionality, so you need to make sure savings are worth it versus a much better plain vanilla fixed rate deal.”

BROKER RATINGS

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

Overall 7/10

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