Coventry for Intermediaries has expanded its residential range which allows borrowers to offset their savings against interest paid on a mortgage.
The lender has added products to its offset range including two-, five- and 10-year fixes up to 85 per cent loan-to-value (LTV).
Coventry for Intermediaries' lowest rate in the range without a fee is available at 1.99 per cent on a two-year fixed product up to 50 per cent LTV.
A five-year fixed rate is also available at 2.29 per cent at 85 per cent LTV with a £999 fee and a 10-year fixed rate at 2.59 per cent up to 75 per cent LTV, also with a £999 fee.
Kevin Purvey, director of intermediaries at Coventry Building Society, said the fee-free products in the range were well suited to clients looking to keep their initial costs low.
He said: "Our offset mortgages are a fantastic option – they’re simple to manage, they make savings work harder and borrowers could use their savings to reduce their monthly mortgage payments or reduce their term.
"An offset isn’t just for big savers – a small amount saved regularly can make a big difference."
David Hollingworth, associate director of communications at London & Country Mortgages, said there was often a feeling offset mortgages did not pick up as much interest as they should in the market.
He said this was especially the case given savings rates have been so low lately.
Mr Hollingworth said: "Coventry is one lender that has backed offset and maintains a range of deals that will typically be priced favourably, a key consideration for anyone wondering whether offset will work for them versus what may be a lower rate on a traditional mortgage."
rachel.addison@ft.com
