Its two-year fixed rate loan has been reduced to 2.25 per cent from 2.35 per cent. The loan, which matures on 30 June 2015 comes with a 65 per cent loan-to-value. The overall costs for comparison is 4.3 per cent.
The Offset Flexx for term with a 75 per cent LTV comes down from 3.09 per cent to 2.85 per cent. The overall comparative is 3 per cent.
Its Buy-to-Let Flexx for Term product falls to 3.29 per cent from 3.99 per cent. The maximum LTV is 65 per cent while the comparative costs weigh in at 3.5 per cent.
Colin Franklin, sales and marketing director, Coventry Building Society, said: “Our popular Flexx for Term range has just got even better, as we have cut rates by up to 0.70 of a percentage point. Borrowers can now enjoy the flexibility of no early repayment charges and unlimited overpayments, from rates as low as 2.35 per cent. For borrowers looking for the security of a fixed rate we have also reduced rates on all our two-year fixed products by 0.10 of a percentage point. All our products include a valuation up to £700 and access to our remortgage transfer service.”
Ray Boulger, senior technical manager for Kent-based John Charcol, said: “Some of these Coventry Building Society rates are very good and when it changes interest levels, the society tends to move them across the board. And this is a lender that is lending – it now accounts for some 17 per cent of all lending despite its relatively small size. I like its Flexx products as these offer many of the advantages of offset loans but at a better rate. So you have a combination of very competitive rates with no early repayment charges so borrowers can walk away at any time. This facility effectively means it will not give customers a hard time by increasing rates on these products, which it could do. Coventry – Godiva in the broker market – has a good record on this. But additionally, it knows that borrowers can walk away, effectively restraining it from unreasonable increases.”
Coventry offers valuations up to £670 and free remortgage transfers as part of the deal. The booking fee is £199 – £250 for buy-to-let loans – while arrangement fees on most of its loans are charged at £800 although some are just £300.
The fixed rate range comes with early repayment charges equal to 3 per cent of the outstanding balance throughout the life of the loan, but there are no ERCs on variable rate mortgages.