Coventry Building Society has introduced the 6.20 per cent capped rate mortgage.
Aimed at remortgage and first time buyers, the mortgage has a capped rate of 6.20 per cent for the first five years, along with a maximum loan to value of 75 per cent.
When the capped rate expires, on November 30, 2005, the mortgage will revert to Coventry Building Societys standard variable rate, which currently stands at 7.05 per cent.
Looking at other five year capped rate mortgages, the 6.20 per cent is the lowest rate on September 5, 2000. Its nearest rivals are the 6.60 per cent capped rate mortgage, also from Coventry Building Society, and the 6.85 per cent capped rate mortgage from Marsden building society.
The only drawback to the 6.20 per cent mortgage is its 75 per cent maximum loan to value limit, whilst the other two have a 95 and 90 per cent loan to value respectively.