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Coventry offsets the pace

COVENTRY BUILDING SOCIETY

Altogether Better Offset +0.75% Base Rate Tracker

Type:
Offset tracker mortgage

Tracker term:
Until May 31, 2009

Tracker rate:
0.75% above Bank of England Base Rate

Payable rate:
5%

Minimum loan:
£1

Maximum loan:
Up to 95% of valuation subject to a maximum of £500,000

Income multiples:
Based on affordability calculation and credit score

Conditions:
Free valuation up to £650

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

Arrangement fee:
£199

Redemption fee:
None

Introducer&#39s fee:
Subject to negotiation

Tel: 0845 776 7825

Coventry Building Society&#39s altogether better offset 0.75% base rate tracker is an offset mortgage with flexible features.

London & Country mortgage specialist James Cotton would prefer this to track the base rate for life rather than five years. He says: “Offset deals have become commonplace recently as more lenders are introducing such schemes. This scheme has all the flexibility you would expect from an offset deal including overpayments without penalty. Borrowers also have the ability to apply for payment breaks each year, which can be useful, particularly for those who have fluctuating incomes.”

Cotton points out that although Coventry&#39s rate is not the lowest of its kind, it does offer a consistent rate of 0.75 per cent above the base rate for the full five years as opposed to an attractive rate for just a few months. He adds: “Customers get a good deal on fees in the shape of free valuation and legal work for remortgages, plus a reasonable £199 arrangement fee. The Coventry also provides a good level of service to both introducers and borrowers.”

In Cotton&#39s view, Intelligent Finance may be a competitor but he adds: “Probably more comparable is the deal from the Universal, which at 0.5% above the base rate for the term of the mortgage, has a better rate of interest. It also has very similar offset features.”

Summing up Cotton says: ” Offset deals in general are at higher rates than standard, more traditional products, so borrowers often need large amounts of savings to make them worthwhile. Some may therefore prefer to go for a more conventional scheme at a lower rate and simply remortgage in the future.”

BROKER RATINGS:

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

Overall 7/10

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