Coventry releases 2.39% 10-year fix

Ryan Bembridge

July 7, 2016

row of houses street

Coventry for intermediaries has released a selection of 10-year fixed rate mortgages including a 50% loan-to-value product at 2.39% with a £999 arrangement fee.

The lender has also released a 2.49% 10-year fix to 65% LTV with a £999 fee and another 50% LTV 10-year fix at 2.69% with no arrangement fee.

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

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“Today’s market is particularly fast-moving, however, so I’d encourage brokers to act now to secure this great product for their clients from Friday.

“And of course, all of our products are still booking fee free and include a valuation of up to £670 for residential mortgages.”

Kevin Mountford, banking expert at MoneySuperMarket, called Coventry’s release an “interesting one” in the face of political and economic uncertainty post-Brexit.

He said: “A 10-year fixed rate at less than 3% will put many people in a financial ‘safe haven’, knowing that whatever happens in the coming weeks and months with interest rates and other market changes, their mortgage payments will stay the same until 2026.

“Ten years is of course a long time and may not work for some people who don’t want to make any decisions now, but for those who have no intention of moving home this is a no-brainer.

“The new HSBC 10-year fixed is also worth considering – it has a slightly higher rate at 2.79% but comes with no fees and a higher loan-to-value of 70%.

“This highlights the importance of looking at the overall cost of comparison on a mortgage, rather than just a stand-out rate.”