Coventry Building Society is expanding its range of products to include a stepped fixed rate mortgage, and a discounted mortgage product.
The stepped fixed rate offers a 4.99 per cent interest rate until September 2002. After that the rate will remain within 1.7 per cent of the base rate, which is currently 6 per cent.
The product includes a free remortgage package, and an arrangement fee of £295 charged upon completion.
Customers opting the discount product will have a 2.25 per cent interest rate until the end of September 2002. There are no redemption charges on the discount product, which is portable. A £495 arrangement fee is charged upon completion.
Both the additions to Coventry's portfolio have a maximum loan to value ratio of 95 per cent. Interest is calculated annually for both.
On products like the stepped fixed rate where redemption charges apply, customers are allowed up to 10 per cent of the mortgage balance to be repaid annually without any charge being levied.
Coventry media relations manager Yvonne White says: “The new portfolio has been designed to give customers a real choice of straightforward and flexible products which will give them short or long term benefits to suit their individual circumstances.”