For the two-year fixed rate mortgage until 31 October 2016, the interest rate for 65 per cent loan-to-value is 3.49 per cent, with no arrangement fee and a £250 booking fee. For the five-year fixed rate mortgages at 65 per cent LTV, there is a £250 booking fee and a £1,749 arrangement fee. Early repayment charges for this product are payable until 31 October 2019.
In terms of early repayment charges, for the two-year fixed rate mortgage, there is an initial 3 per cent of the balance fee until 31 October 2015, and then 1 per cent until 31 October 2016. For the five-year fixed rate (until 31 October 2018), the charge is 5 per cent, after which it falls to 3 per cent for the final year.
Customers can repay up to 10 per cent of the capital yearly without incurring an early repayment charge.
Meanwhile, Coventry Intermediary’s Flexx for Term mortgage, is offering a starting rate of 2.69 per cent at 65 per cent LTV. The booking fee and arrangement fee are £250 and £1,749 respectively and there are no early repayment charges.
Provider view: Colin Franklin, managing director at Coventry Intermediary’s buy-to-let arm Godiva Mortgages, said: “We expect our two-year fixed rate at 3.49 per cent with no arrangement fee will be very popular with borrowers looking to keep their initial costs low. And our Flexx for Term option at 2.69 per cent is perfect for those looking for the flexibility of unlimited overpayments with no early repayment charge. Also, all buy-to-let products include a valuation up to £700 and access to our remortgage transfer service.”
Adviser view: Stuart Cunningham, director of operations at Norwich-based Commercial Trust, said: “Though both the fixed-rate products offer good value, the real winner here is the Flexx for Term mortgage. The starting rate is competitive and, if the eventual increase in interest rates is slow and incremental as the Bank of England has promised, it should remain so for some time. The fact that the product comes without early repayment charges also offers outstanding flexibility, especially for those landlords who may not want to be tied into the property for a given period of time, and provides longer-term customers with a painless escape route for when rates begin to rise.”
Charges: The booking fee is £250, and arrangement fees vary from £749 to £1749. The remortgage transfer service includes one mortgage valuation up to a maximum of £700.