New offset mortgage rates from Coventry

Published: August 13, 2008

The Coventry Building Society has today announced the launch of two new offset mortgage rates. An offset mortgage allows borrowers to offset the balance of a designated savings account against their outstanding mortgage for the purpose of calculating the interest to be charged, and can therefore result in significant savings for those with cash to put in the savings account.

The schemes consist of a 6.19% fixed rate with a £199 booking fee and an £800 arrangement fee, and a 6.49% fixed rate with no booking or arrangement fees. Both schemes are available fixed for either three or five years, and are available to those borrowers wishing to borrow up to 50% of the property value. A free valuation for mortgage purposes, and a free remortgage transfer service is available to those customers wishing to switch to the Coventry from another lender.

Colin Franklin, head of sales at the Coventry said: "I'm sure that the combination of offset functionality, free valuation and free legal fees for remortgage customers will prove to be attractive to intermediaries and their clients. With many deals in the market demanding high fees, our fee-free option really is one of the best deals available."