This week, Coventry Building Society is launching what has been described as a ‘unique’ mortgage product. The deal is a fixed rate mortgage that allows its borrowers to make as many overpayments on their mortgage as they wish with no limit on the amount they can overpay – with no penalties.
As mortgage advisors will tell their clients, if you anticipate making significant overpayments on your mortgage then you must be careful to note the terms and conditions of your mortgage. Most mortgage lenders will cap the level of overpayments that can be made – typically to around 10 percent of the mortgage balance in a twelve month period.
Coventry’s new fixed rate mortgage is part of its Flexx Fixed range and the lender claims it is the only mortgage allowing the mortgage holder to pay as much as they like without a penalty.
There are two of these mortgage deals on offer at present; 3.99% fixed for two years (minimum Loan To Value (LTV) of 65%) or a 4.49% three year deal with a minimum LTV of 75%.
The Sales & https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/Mortgage-Man-3.jpgeting Director at Coventry, Colin Franklin, commented:
“With interest rates at a historic low, many people are using this opportunity to overpay on their mortgage, and in some cases, become mortgage free many years earlier than they expected. We’ve designed our Flexx Fixed range to allow them to continue doing this whilst benefiting from the security a fixed rate product offers.”
In other news, Coventry is set to merge with the struggling Stroud & Swindon building society on 1st September creating a society with around 1.5 million members and more than 90 branches round Birmingham, the West Midlands and the South of England.
Those looking at CeMAP courses to become mortgage advisors round Birmingham will be interested in this news, although mortgages with building societies such as Coventry are not restricted to local residents.