Coventry releases fantastically low 2.39% ten-year fix

by Aaron Strutt

Jul 08 2016

Coventry Building Society has launched one of the lowest-ever ten-year fixed rate mortgages.

Priced at 2.39% and locked in until 30 September 2016, the fixed rate offers incredible long term payment security.

After the fixed period, the mortgage reverts to the lender’s standard variable rate which is currently 3.99%. The overall cost for comparison is 3.2% APRC.

Aaron Strutt, product director at Trinity Financial, says: “Many borrowers like the thought of locking into ten-year fixes, but when they find out how much more expensive the rates are they opt for a two or five-year deal.

“If you take a five or ten-year fix, you have to make sure you understand the early repayment charges. Some of the lenders charge six or even seven per cent and if your plans change and you need to repay the mortgage early, you could be hit with a large bill.”

Rate details

Coventry’s 2.39% rate does not have an arrangement fee and early repayment charges apply for full ten years. Applicants will have to repay 5% of the loan amount until 30 September 2018, and then 3% until 30 September 2021 and 1% until 30 September 2016.

Applicants will need a 50% deposit to qualify and there is a maximum loan size of £1 million. If you have a 25% deposit – the mortgage rate is 0.10% more expensive, and there is a £999 arrangement fee.

Over the last week, a host of lenders improved their ten-year fixes, including Barclays, West Brom and HSBC.

For help to secure a fixed rate mortgage, call Trinity on 020 7016 0790.