Coventry launches new Offset mortgage deals

The Coventry Building Society has today announced the launch of three new offset mortgage deals. The new rates will be available from Friday 11th July and consist of a variable rate for the term of the mortgage and five and ten year fixed rates.

The variable rate is currently 6.60% and is available for mortgages of up to 75% of the value of the property. A free valuation is offered for both purchases and remortgages and free legal fees for remortgages. There are no Early Repayment Penalties at any time, and the mortgage is fully flexible. There is an arrangement fee of £800 which can be added to the loan, and a booking fee of £199 which has to be paid with the application.

The ten year fixed rate, which is priced at 6.49% and is also available up to 75% of the value of the property. Again, a free valuation is offered for both purchases and remortgages and free legal fees for remortgages. The fees payable are the same as for the variable rate product except that there are Early Repayment Charges payable for early repayment. The five year fixed rate is identical to the ten year fixed rate, but priced at 6.59%.

All three schemes feature an offset facility whereby the credit balance of a savings account with the Coventry may be "offset" against the mortgage balance when interest is charged, meaning a lower amount of interest is due. Offset mortgages can offer very significant advantages, especially for higher tax payers with cash savings, or the self employed.

In addition to the new offset mortgages, Coventry has also announced two mortgages which are available up to 90% of the property value. The first is a tracker rate which is set at 2.3% above the Bank of England base rate for the term of the mortgage, which gives a current rate of 7.3%. The free valuation and free remortgage legal service is the same as for the offset products, as is the fee structure.

The remaining scheme is a five year fixed rate exclusively for first time buyers. The scheme is priced at 7.29%, and there are Early Repayment Penalties payable for redemption within the first five years. Unlike the other new schemes, this scheme has no arrangement fee, but retains the free valuation of the other new products. The booking fee remains at £199 payable on application.

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