View more on these topics

Coventry offsets the pace


Altogether Better Offset +0.75% Base Rate Tracker

Offset tracker mortgage

Tracker term:
Until May 31, 2009

Tracker rate:
0.75% above Bank of England Base Rate

Payable rate:

Minimum loan:

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

Income multiples:
Based on affordability calculation and credit score

Free valuation up to £650

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

Arrangement fee:

Redemption fee:

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.”


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

Overall 7/10


New Northern UK head for Cavanagh

Cavanagh Group is appointing Peter Young as sales manager of the company&#39s northern region. Young – who is a past Sofa award-winning adviser – joins Cavanagh from Momentum as it is absorbed into Aegon&#39s amalgamated IFA operation Origen. Young will be responsible for the Scottish and North of England areas and is briefed to expand […]

&#39Sesame value plunges to £80m&#39

The loss of advisers to national IFAs and low-cost providers means that Sesame is now worth no more than £80m, according to a report by analyst Durlacher. The report predicts that strains on parent Misys&#39 corporate strategy could force a sale of Sesame for a fifth of the £400m that the network business was initially […]

Sainsbury&#39s Bank launches 5.4 per cent one year fixed rate savings account

Sainsbury&#39s Bank is launching a one-year risk-free savings account at 5.4 per cent guaranteed gross return. The account is only available until stocks run out and investors can invest £3,000 or more and be paid interest upon maturity in July 2005. Sainsbury&#39s has devised a first-come first-served booking system to ensure allocation is as fair […]

Life offices offer to pay PI premium for place on panels

Standard Life, Legal & General and other big product providers are understood to be offering to pay IFAs&#39 professional indemnity insurance in order to be on their multitie panels. Money Marketing understands that some providers are putting together additional business services to offer IFAs as a sweetener to encourage them to take the provider on […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm