Unfortunately, this deal is no longer available
Fixed mortgage initial rate 1.15%, 2 years and £999 product fee at Coventry Building Society
287° Expired

Fixed mortgage initial rate 1.15%, 2 years and £999 product fee at Coventry Building Society

19
Posted 23rd Feb

This deal is expired. Here are some options that might interest you:

Currently stumbled on this Initial rate
1.15% Fixed rate to 31.03.22
Followed By Standard Variable Rate, with a discount of 0.50%, to 31.03.2025, to give a current rate of 4.49%
Max LTV 50%

Anyone found something cheaper?
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19 Comments
Pretty low Max LTV and fees work out at around £40 a month over the two years. The STV seems really high so you'd want to move again at the end.

Definitely a case of do the maths but I guess it must be good for someone as they wouldn't offer it if the wasn't a market?
For 0.29% extra per annum I'd be more tempted with the HSBC 5yr fix.

Of course it will depend on your circumstances, but the 5yr fee is only payable once, where as a 2yr one would be 2.5x equivalent.

Don't forget exit fees each time you move your mortgage, plus all the hassle (unless you stay with your current lender).

You could also get stuck on the SVR if your circumstances change.

Interest rates could also rise and are unlikely to drop (certainly not by much).

Most importantly, do your research and consider all the options before making your commitment, whatever you choose.
Bash_er23/02/2020 12:27

For 0.29% extra per annum I'd be more tempted with the HSBC 5yr fix.Of …For 0.29% extra per annum I'd be more tempted with the HSBC 5yr fix.Of course it will depend on your circumstances, but the 5yr fee is only payable once, where as a 2yr one would be 2.5x equivalent.Don't forget exit fees each time you move your mortgage, plus all the hassle (unless you stay with your current lender).You could also get stuck on the SVR if your circumstances change.Interest rates could also rise and are unlikely to drop (certainly not by much).Most importantly, do your research and consider all the options before making your commitment, whatever you choose.


Exit fees? I've never paid them
Is there a valuation fee with this? I can’t work out if they will pay for a valuation fee up to £670 or if that’s what they want to charge. £1k product fee working out at £40 a month takes the gloss off it a little.

In process of remortgaging at the moment through a broker. £99 broker fee. 1.75% with no fees. £250 cash back and no other fees. 50% deposit. That’s the bench mark I’ve got, might end up continuing with broker as it’s a bit easier than applying myself. Although there are others slightly cheaper out there.
Could anyone offer any advice here. I’m looking to remortgage for 2 years but also plan to sell and move in 2 years. Would it be better to get a 2 year deal or a longer deal and port the mortgage over?
There is also a chance of keeping the property and renting it out whilst buying another. I suppose if that happen I’d need a 2 year deal as I’d have to release equity. I suppose it’s two different circumstances so I guess I need to figure out if I plan to sell or to rent the property in 2 years. Any help would be appreciated though!
201523/02/2020 12:41

Is there a valuation fee with this? I can’t work out if they will pay for a …Is there a valuation fee with this? I can’t work out if they will pay for a valuation fee up to £670 or if that’s what they want to charge. £1k product fee working out at £40 a month takes the gloss off it a little. In process of remortgaging at the moment through a broker. £99 broker fee. 1.75% with no fees. £250 cash back and no other fees. 50% deposit. That’s the bench mark I’ve got, might end up continuing with broker as it’s a bit easier than applying myself. Although there are others slightly cheaper out there.


Never paid a penny to a broker !! Currently got an offer for 1.39% with £999 fee for 3 years or 1.44% with £999 for 5 years but not decided yet.
Ye I couldn’t believe the £99 admin fee was in the small print. I have emailed and asked them to remove it if they want me to proceed. Hopefully they’ll see sense with the £470 commission they’ll potentially miss out on!

Suppose your offer depends on your situation. If you plan to be there for 5 years or less. I always seem to find that the product fees seem to make the mortgage more expensive but I suppose it depends how big your mortgage is.

gudman23/02/2020 12:50

Never paid a penny to a broker !! Currently got an offer for 1.39% with …Never paid a penny to a broker !! Currently got an offer for 1.39% with £999 fee for 3 years or 1.44% with £999 for 5 years but not decided yet.

gudman23/02/2020 12:50

Never paid a penny to a broker !! Currently got an offer for 1.39% with …Never paid a penny to a broker !! Currently got an offer for 1.39% with £999 fee for 3 years or 1.44% with £999 for 5 years but not decided yet.


60% LTV?
backyard23/02/2020 12:32

Exit fees? I've never paid them


You most certainly have. Most, if not all mortgage companies charge an exit/closure fee when you remortgage to another lender.
Edited by: "Bash_er" 23rd Feb
£999 every two years for a 25 or 30 year motgage is a killer. Seems the institutions are moving away from interest charges and making all their money from pushing expensive products instead. Good times.
Edited by: "friar_chris" 23rd Feb
friar_chris23/02/2020 13:07

£999 every two years for a 25 or 30 year motgage is a killer. Seems the …£999 every two years for a 25 or 30 year motgage is a killer. Seems the institutions are moving away from interest charges and making all their money from pushing expensive products instead. Good times.


£999 product fees have been around for a good while. It certainly helps with the headline rates.

This is why you should consider the impact on short term fixes vs the longer ones.
Bash_er23/02/2020 13:12

£999 product fees have been around for a good while. It certainly helps …£999 product fees have been around for a good while. It certainly helps with the headline rates.This is why you should consider the impact on short term fixes vs the longer ones.


Absolutely on both points. Don't get me wrong I think this IS a good deal. The low interest rate is insane. There's a definite offset between arrangement fees and interest rates, there are products available with no arrangement fees at all, but higher interest to compensate. On this deal the product fees over the life time of the mortgage are about a fifth of the total the buyer will repay. I can almost see a day where institutions don't charge interest at all.
Edited by: "friar_chris" 23rd Feb
friar_chris23/02/2020 13:28

Absolutely on both points. Don't get me wrong I think this IS a good deal. …Absolutely on both points. Don't get me wrong I think this IS a good deal. The low interest rate is insane. There's a definite offset between arrangement fees and interest rates, there are products available with no arrangement fees at all, but higher interest to compensate. On this deal the product fees over the life time of the mortgage are about a fifth of the total the buyer will repay. I can almost see a day where institutions don't charge interest at all.


Indeed. Many people see the headline grabbing rate, but overlook the impact of the product/arrangement fee, especially on the short term products.

When you do the sums, the longer term fixes can quite often be no more in the long run, with the added benefit of the longer fix.
They are essentially equivalent to the sort of deals Three and Virgin Media did. 1/2 price for 6 months then full whack for the rest of the 18 months.
201523/02/2020 12:58

Ye I couldn’t believe the £99 admin fee was in the small print. I have em …Ye I couldn’t believe the £99 admin fee was in the small print. I have emailed and asked them to remove it if they want me to proceed. Hopefully they’ll see sense with the £470 commission they’ll potentially miss out on! Suppose your offer depends on your situation. If you plan to be there for 5 years or less. I always seem to find that the product fees seem to make the mortgage more expensive but I suppose it depends how big your mortgage is.


Plenty of mortgage brokers are not only fee free now but even offer you a share of that 470 quid! EG topcashback.co.uk/cas…es/ (not in any way affiliated other than using them and having a great experience with them last year)

On the other side I think plenty of people still subscribe to the view that paying more automatically means the product is better, or are naturally suspicious of any free service, so maybe that's their thinking...
I never knew that and didn’t even think there would be cash back through topcashback!

For my mortgage amount it would be £215. The lender I’m potentially using through the broker is offering £250 cash back at this moment so not too different.

Might contact the other guys and see what rate they could get though. Thanks for the heads up

sparkeeh24/02/2020 10:03

Plenty of mortgage brokers are not only fee free now but even offer you a …Plenty of mortgage brokers are not only fee free now but even offer you a share of that 470 quid! EG https://www.topcashback.co.uk/cashback-remortgages/ (not in any way affiliated other than using them and having a great experience with them last year)On the other side I think plenty of people still subscribe to the view that paying more automatically means the product is better, or are naturally suspicious of any free service, so maybe that's their thinking...

201524/02/2020 12:00

I never knew that and didn’t even think there would be cash back through t …I never knew that and didn’t even think there would be cash back through topcashback!For my mortgage amount it would be £215. The lender I’m potentially using through the broker is offering £250 cash back at this moment so not too different. Might contact the other guys and see what rate they could get though. Thanks for the heads up


No worries, this 215 is additional to that 250 which is paid directly to you from the lender, it comes from the broker sharing part of his 470 quid commission from the lender with you
Edited by: "sparkeeh" 24th Feb
Usual issue, no one mentions the critical info the amount being borrowed which is critical in analysing any fee/no fee deal.

Along with planned payment that determines the break even over the fixed term
Edited by: "getmore4less" 1st Mar
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