Best 5 year fixed deal ever???

handful

I have a lifetime tracker with the Coventry on a rate of BR +0.75% and am obviously quite happy with that at the moment! I was even happier to receive a letter this morning confirming there is no collar so further rate cuts will be passed on.

All good so far, then came an offer of a new 5 year fix of 3.99% :eek:

Just when I was starting to enjoy my situation they come in with an offer that would undoubtedly cost me in the short term but IMO would almost certainly be a good deal over 5 years.

Anyway, I've not posted this to gloat but just wanted to give some positive news that may give hope to those looking to fix on a competitive rate in the coming months, the rates are dropping!!

savemoney

Are there any fees for this

handful

Hi savemoney. Details of offer below:-

3.99% fixed until 31/12/2013
Overall cost for comparison is 4.8% APR
Early repayment charges of 4% of the balance repaid until 31/12/2013
No booking fee
No arrangement fee
Daily interest

They have guaranteed the offer until 5th December.

Can't see how I can turn it down tbh but sods law there will probably be something better. But that's the problem, everyone that hasn't got the best possible deal thinks they have lost money!!

savemoney

That looks good especially no fees and whilst its only slightly less than 1% of BOE rate, rates are bound to go up in the long run although I suspect rates may drop further

The fees tend to put me off deals especially when I have a very large amount of equity now in our house

temba

Is this available for anyone? I just looked on their website and I couldn't see it. The only one I could see is 6.99%. It does indeed sound like a very favourable rate, and I would be very interested if anyone has a link to this rate.

thanks T

opinions4u

Sounds too good to be true.

In what context have they offered it to you?

Is it because they fear base rates going lower and want you out of your tracker deal?

hethmar

Thats truly amazing - son has been offered over 6% with Nationwide fixed 2 years

savemoney

Is this deal online at all.

niceguyed

Short term rates set to drop further (who knows how much further as not many predicted 1.5% last cut) but over the course of 5 years you would expect rates to rise again. Is the mortgage portable? Personally I would take it as the surety of being on what is still a comparitively low rate of 3.99 would give me peace of mind.

savemoney

3.99 is a great deal I would be interested in that myself

handful

I don't think this deal is on 'general offer'. The letter was titled 'A new option for your mortgage' and started by telling me that they were pleased to inform me that my current tracker deal was 'without any floor' hence would follow any further Base Rate cuts.

It then went on to say, and I quote,

"However, following the recent substancial cuts in the B ofE Base Rate, we are now in a position to offer you a highly competitive fixed rate alternative."

followed by the details already given above. It does also say that to secure the product I must return the paperwork asap and that I have until 5th December to make up my mind.

So I'm sorry if I raised hopes that it would be generally available. If you have current deal with the Coventry however, a similar letter may be on the way.