You are here: Home - Mortgages - First Time Buyer - News -

Coventry BS launches lowest ever 10-year fixed rate

0
06/07/2016
Coventry Building Society is set to launch the lowest ever 10-year fixed rate at 2.39% at 50% loan-to-value (LTV).

The product, which comes with a fee of £999, is one of a raft of cut-priced fixes the society will make available from Friday. A fee-free option priced at 2.69% is part of the refreshed product line.

Kevin Purvey, head of intermediaries, said: “The fall in swap rates means we’ve an opportunity to offer these market-leading rates to people looking for long-term security in these uncertain times.”

Coventry’s 10-year fix comes with early repayment charges for the term of the product. Borrowers looking to redeem before the product expires will pay 5% of the mortgage balance during the first two years, 3% for the next three years and 1% for the remaining term.

Moneyfacts finance expert Rachel Springall said: “A decade-long fixed mortgage is becoming a growing trend amongst lenders who are providing borrowers with a long-term option to secure their monthly mortgage payments.

“This trend may well continue to grow in times of uncertainty, but borrowers must always work out the true cost of any deal and be sure that their circumstances will remain relatively unchanged for the next 10 years.”

Currently, the lowest 10-year fix available is Leeds Building Society’s 2.84% deal at 65% LTV, which carries a fee of £1,499.

TSB’s 10-year fix, available up to 60% LTV, while priced slightly higher at 3.19% with a fee of £265, has a shorter redemption period covering just five years of the product term, at a decreasing rate of 5/4/3/3/1%.

True cost comparisons of medium to long-term fixed rates

Assuming all customers borrowed £200,000 over 25 years (source: Moneyfacts)

Lender Product Rate LTV Fee True cost after 5 years
Coventry 10-year fix 2.39% 50% £999 £54,170.40
Leeds 10-year fix 2.84% 65% £1,499 £57,410.60
TSB 10-year fix 3.19% 60% £265 £58,363.60
Coventry 5-year fix 2.29% 50% fee free £52,573.80
HSBC 5-year fix 1.99% 65% £1,499 £52,303.40

Several of Coventry’s products will be withdrawn on Friday including the 10-year fix at 2.99% for loan-to-values of 65%.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week