The Coventry offset mortgage from Coventry Building Society combines an offset savings account with an offset mortgage so that customers can use the interest to reduce the money paid on their mortgage. Savings are held in a separate offset savings account and are accessible at any time.
The Coventry offset mortgage is available to home movers and remortgagers. Borrowers can choose from capital repayment or interest only payment terms or a mix of them. Borrowers can add to their offset savings account up to the value of their outstanding mortgage balance. With the Coventry offset mortgage any interest earned on the offset savings account is paid to the offset mortgage account and is tax free.
The Coventry offset mortgage allows borrowers who are offsetting to choose how to manage their money. With an interest only or part repayment/part interest only mortgage the offset benefit will reduce the amount owed at the end of the mortgage term. For borrowers with a repayment mortgage, the offset benefit will reduce the mortgage term itself.
Borrowers who have a Coventry offset mortgage can make regular or lump sum overpayments, provided these are not restricted by the actual offset mortgage product. Subject to approval Coventry offset mortgage holders can choose to take a payment break of up to three months each year, though interest will continue to be added to the Coventry offset mortgage account. Payment breaks can only take place after six consecutive months of payments and must be authorised by the building society. Homeowners with a Coventry offset mortgage can also borrow additional sums at the offset rate, subject to approval. However underpayments and payment holidays could increase the mortgage term and/or the total amount payable
There are many versions of the Coventry offset mortgage. Most Coventry offset mortgage products have a £199 booking fee, an arrangement fee, a free remortgage transfer service and a free valuation up to £650. A higher lending charge is payable for Coventry offset mortgage products above 90 per cent loan to value. Mortgages which are repaid before the end of the term will be subject to a £195 administration fee. There are currently some other deals available without any booking fees, arrangement fees and valuation fees. Contact us for our free professional advice concerning these specific deals.
The Offset 5.69% fixed rate Coventry offset mortgage has a fixed rate of 5.4 per cent until March 2010 and then tracks 0.85 per cent above the Bank of England base rate for the rest of the mortgage term. Interest is calculated daily. The maximum loan to value is 95 per cent. An early repayment charge of 4 per cent of the balance repaid applies during the fixed rate period. However, borrowers can repay up to 5 per cent of the capital each year without charge.
The Offset +0.49% Flexx Tracker Coventry offset mortgage tracks 0.49 per cent above the base rate for the life of the mortgage. It has an APR of 7.5 per cent and there is a maximum loan to value of 95 per cent. There are early repayment charges of 4 per cent of the outstanding loan amount untill the end of March 2010.
Coventry also offer a lifetime variable flexible offset deal at 6.10 per cent. Remortgage deals currently come with a free valuation although there is a lenders booking fee and arrangement fee to be paid - the arrangement fee however can be added to the mortgage loan. The APR for this deal is currently 6.4%.*
Quick online decisions and payment breaks of up to 3 months
Offsetting from one savings account
Access your savings with a Cash Link Card
