Coventry offering five-year fix mortgage without early repayment charges
Coventry for Intermediaries has launched one of the only five-year fixed rate mortgages without early repayment charges.
The mortgage is priced at 1.99% and is fixed until the 30 September 2022. After the fixed period, it will revert to the lender's standard variable rate of 4.24%. The overall cost for comparison is 3.44% APRC representative.
Coventry’s 1.99% rate has a £499 arrangement fee, and applicants will need a 50% deposit to qualify. There is a free property valuation, and the maximum loan size is £1 million.
Aaron Strutt, product director at Trinity Financial, says: “Many borrowers like the idea of five-year fixes but they do not want to be locked in for five years.
“Coventry’s rate will let them have payment security with the flexibility to pay off the debt at any time. There will be a £125 admin fee.
“It is worth noting that borrowers are paying for the privilege of the flexibility and could secure a lower rate if they are happy to be tied in.”
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate for five years at 1.99% and then on a variable rate of 4.24% for the remaining 23 years, would require 59 monthly repayments of £1,058.42 followed by 241 monthly repayments of £1,296.64. The total amount repayable would be £375,621.45 made up of the loan amount, plus interest (£124,937.02) and fees of £499. The overall cost for comparison is 3.44% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a fixed rate mortgage