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Lender says...

Coventry has launched a five-year fixed rate product available at a rate of 6.99 per cent.

The product is available up to a maximum loan-to-value of 90 per cent and has an arrangement fee of £800 and a booking fee of £199.

The product includes a free valuation and a free remortgage transfer service. If the borrower would prefer to use their own solicitor then Coventry will pay £200 towards fees.

There is an early repayment charge of 4 per cent during the fixed rate period but borrowers can overpay by up to 5 per cent of the capital each year without incurring a penalty fee.

This product has replaced a term tracker that was available at 1.99 per cent more than the base rate, which gave a rate of 6.49 per cent.

Adviser says...

Peter O'Donovan, mortgage adviser of London-based IFA Bestinvest, said: "The overall package is good but it is just the rate is extremely high especially in the current conditions. Coventry is obviously hedging its bets that rates will continue to go down but are still providing a fixed rate deal for first-time buyers."

Rating: 3/5 stars