Coventry offers cashback on selected residential mortgages

Coventry offers cashback on selected residential mortgages

Coventry for intermediaries offers £500 cashback on selected two and five-year fixed rate residential mortgages.

The lender launched a range of residential mortgages today (11 May), which are aimed at  home movers and first-time buyers.

The four cashback products are available on its two-year and five-year fixed rate mortgages, which range between 85 per cent and 90 per cent loan-to-value (LTV).

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Kevin Purvey, director of intermediaries at Coventry, said: "Our £500 cashback incentive will help customers with the cost of moving home, something which proved very popular with our intermediaries last year."

The range includes a two-year fixed rate at 2.15 per cent until the end of June 2020 at 85 per cent LTV.

The 2.19 per cent rate is also fixed for two-years until the end of June 2020 at 90 per cent LTV.

The 2.29 per cent rate is fixed for five-years until the end of June 2023,  with a 85 per cent LTV and lastly, the 2.45 per cent is also fixed for five-years until the end of June 2023.

All products come with a £999 product fee.

The cashback incentive will be paid directly to borrowers within 30 days after completion of their mortgage.

The society has also reduced rates by 0.1 per cent on its five-year fixed residential, offset and first-time buyers only mortgages.

Alan Lakey, director at Highclere Financial Services in Hertfordshire, said: "The Coventry is effectively cutting its administration fee to £499.

"Nonetheless it compares well against other lenders. Some like Nationwide offer 1.89 per cent, compared to Coventry's 2.19 per cent but have no cash back making the fee £500 higher.

“The larger the loan, the less effective the cashback is compared to lower rates, the monthly saving has to be £21 to balance the higher fee. This is sure to prove a popular product."