View more on these topics

Welcome cut from Coventry

Coventry Building Society

Offset 4.65% Fixed

Type: Fixed-rate offset mortgage

Fixed-term: Until September 30, 2011

Fixed rate: 4.65%

Minimum loan: £1,000

Maximum loan: : Up to 75% of valuation subject to a maximum of £1m

Income multiples: Based on affordability

Conditions: Capital repayments of up to 5% a year allowed without penalty, one free valuation up to £640, free legal fees for remortgages or £200 contribution towards legal costs

Flexible features: Offset facility, payment holiday of up to three months a year after six months, interets calculated daily

Arrangement fee: £800 plus £199 booking fee

Redemption fee: 4% of the amount repaid in the first two years

Introducer’s fee: Subject to negotiation

Tel: 0845 757 3612

This two-year fixed rate at 4.65 per cent from Coventry Building Society provides an offset facility.

Looking at this deal’s suitability to the market, London & Country mortgage specialist David Hollingworth says: “Coventry has cut the rate from 4.79 per cent to 4.65 per cent on its offset fixed rate for loan-to-valuations of up 75 per cent. Any improvement in rate is always welcome.”

Hollingworth says the arrangement fee is pretty typical at a total of £999. He adds that the Coventry offers help with costs in the shape of a free valuation and free legal work for remortgages.

“The rate may not appear to be the cheapest on the market but also comes with offset functionality and some other flexible features such as payment holidays,” he says.

Looking at the less attractive features of this deal, Hollingworth says: “It is hard to find anything particularly offensive about the product. You might consider the 5 per cent penalty-free overpayment facility a little bit stingy compared with other lenders, but the offsetting account negates this downside as spare funds can be placed in the savings account to cut the interest bill.”

Hollingworth believes the First Direct offset fixed rate is the main competitor, with a rate of 3.94 per cent for loans up to 75 per cent of valuation. “Other deals that could appeal to someone with a need for flexibility could include Northern Rock, which currently offers a 2 year flexible fix from 4.69 per cent.”

He adds that borrowers with a 50 per cent deposit/equity level can take advantage of the lower rate from Coventry at 4.25 per cent..

Summing up, Hollingworth says: “Offset currently looks a compelling proposition for those seeking to eat into their mortgage more quickly but is also attractive for those seeking better returns on their savings with deposit rates so low at the moment.


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

Overall 8


Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]


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