View more on these topics

Coventry targets 90% five-year fix at first timers

Coventry Building Society has created a five-year fixed-rate mortgage for first-time buyer at 90 per cent of valuation.

The new Flexx fixed first time buyer deal is fixed at 5.99 per cent until June 30, 2016 and is available only on a repayment basis. It has no arrangement fee but does have a £199 booking fee. There is no early redemption charge in the fixed-rate period, which allows borrowers to make unlimited overpayments or move to another product in the first five years without charge. Free valuation is included up to £670.

Coventry sees this product is unique and believes it stands out in a market where the majority of first-time buyer fixed rate are for two years. The lender says there is a lot of uncertainty about when interest rates will rise and by how much, so a five-year fixed rate option provides certainty of rate. Coventry says first-time buyers who choose a two-year fixed rate option could find the rate environment is very different when their fixed rate comes to an end in a couple of years.

It is possible to get a lower rate through branch only deals from lenders such as Nottingham and Britannia building societies which have £195 and £999 arrangement fees respectively. Both deals also have early redemption fees

Skipton Building Society offers the same rate as Coventry but its fees total £995 and early redemption charges apply in the fixed rate period. Defaqto Insight analyst for banking Kevin Bray says: “There are currently 70 five year fixed rate mortgages available that permit a maximum LTV of 90 per cent or higher. Ten are specifically targeted at first time buyers but mortgages available for house purchases are also available to first time buyers. This expands the choice for first time buyers seeking a 90 per cent LTV five year fixed rate mortgage to 41.”


New Star IT is relegated for lack of liquidity

The New Star investment trust has been relegated from the FTSE all-share and small cap indices of UK stocks after failing liquidity tests. In its Annual Index Review, published last week, FTSE promoted nine investment trusts to the all-share. The only trust it removed was New Star. The changes take the number of investment companies […]

Matthews: ‘Track record in insurance’

Matthews for Aviva as Hodges quits in switch to Towergate

Friends Life vice-chairman Trevor Matthews is taking over as Aviva UK chief executive from Mark Hodges. Last week, Hodges resigned from Aviva to join Towergate Insurance as group chief executive. Matthews was previously Friends Provident UK chief executive and led the company through its acquisition by Resolution in November 2009. He has also been chief […]


McFall looking at contribution rise

Lord John McFall’s Workplace Retirement Income Commission is considering proposals to raise the minimum automatic enrolment contribution rates after 2016. Speaking to Money Marketing after the Wric’s first evidence session in London this week, McFall said stakeholders have raised concerns that the total contribution threshold of 8 per cent is too low. He said: “Auto-enrolment […]

Six set to get accredited body status

The regulator has named the six professional bodies likely to get accredited body status. In its quarterly consultation paper, the FSA lists the Chartered Insurance Institute, the Institute of Financial Planning, the CFA Society of the UK, the Chartered Institute for Securities and Investment, the Chartered Institute for Bankers in Scotland and the Institute of […]

Singapore cover image - thumbnail

White paper — Singapore International Insights

Jelf Employee Benefits assesses key trends within the international private medical insurance provision of organisations with employees in Singapore. Benefit structure, cost management and healthcare facilities are examined and key considerations are highlighted. This edition will be of particular interest to global human resource directors and benefit managers with local and expatriate populations in Singapore.


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