Coventry for intermediaries is marking its return to the 95 per cent LTV market with two 5-year fixed rate products aimed at homebuyers with smaller deposits.
The building society is one of several (including Aldermore and Skipton Building Society) returning to the market this month, in anticipation of the government’s mortgage guarantee scheme opening in April.
Coventry’s new products come with a maximum loan size of £400,000 and are aimed at first time buyers.
The two mortgages are both five year terms until June 30, 2026 with early repayment charges until these dates. Both are 95 per cent LTV.
The 3.89 per cent mortgage has a £999 product fee while the 4.09 per cent mortgage has no product fee.
Both are available for purchase and product transfer only.
“We want to help more people to be able to buy a home, even if they only have a small deposit,” said Jonathan Stinton, head of intermediary relationships at Coventry Building Society.
“Saving for a 10 per cent deposit can be challenging for some would-be buyers and these products help to expand the range of options available to them."
Announced in the 2021 Budget, the government’s scheme allows first time buyers and homeowners to secure a mortgage with a 5 per cent deposit on a property up to £600,000.
To stimulate the housing market’s recovery from Covid-19, the government is offering lenders the guarantee they need to provide mortgages to cover the other 95 per cent.
Jon Yarker is a freelance reporter for FTAdviser