Coventry to offer 100% mortgage to existing customers

ad9898_3

Interesting, Coventry are to offer existing customers in NE a 4.99% 5 year fix, not a bad deal if you need it. The question is why ??

http://www.timesonline.co.uk/tol/money/article5759476.ece

Numenor

Perhaps because existing customers have been shown to be able to make repayments at a given level, and it makes a certain amount of sense to give them an opportunity to continue being able to pay at that level for a few more years? Better than the increased risk of default if interest rates shoot up again in the near future.

ess0two

Not a bad idea,seems perhaps they are looking after customers who have taken out 125% mortgages.
Shows a good duty of care to some extent,will others follow??????????

socrates

Something to do with being a mutual?

chucky

from experience Coventry are very strict lending criteria - i guess they will offer it to existing customers but filter that down dependant on the borrower.

5 year swap rates went down again on Friday so banks (with cash) will have to start to be competitive at some point

socrates

I am with them at the moment and have 4 BTL flexx mortgages @ 4.54%.

I am going to wait and see what happens with the last rate cut - if they do not reduce the rate - it will indicate that 4.54% is the lowest they will go.

I will then consider the 4.99% over 5 years £99 arrangement fee per mortgage.

There is also a 3 year 4.65% for less than 75% LTV - this is a tad appealing as by then I will be a privilege customer - but perhaps I can negotiate something into the deal.

sarkin1

You can read more about it here click here

Dan:_4

ad9898 wrote: »

Interesting, Coventry are to offer existing customers in NE a 4.99% 5 year fix, not a bad deal if you need it. The question is why ??

http://www.timesonline.co.uk/tol/money/article5759476.ece

In the 90s various lenders had special NE deals, Halifax sticks out in memory. Of course they are only available to those with an excellent rating and payment history.

In general it was a good thing and I hope to see more lenders following suit.

ad9898_3

socrates wrote: »

I am with them at the moment and have 4 BTL flexx mortgages @ 4.54%.

I am going to wait and see what happens with the last rate cut - if they do not reduce the rate - it will indicate that 4.54% is the lowest they will go.

I will then consider the 4.99% over 5 years £99 arrangement fee per mortgage.

There is also a 3 year 4.65% for less than 75% LTV - this is a tad appealing as by then I will be a privilege customer - but perhaps I can negotiate something into the deal.

I haven't looked at any details, but I'd be surprised if it included BTL's.

socrates

ad9898 wrote: »

I haven't looked at any details, but I'd be surprised if it included BTL's.

Indeed it does!

baby_boomer

Coventry have been a very aggressive lender recently in terms of bagging market share.

They justified it by requiring a 25% deposit.

But that's been eroded by a 25% fall in house prices so IMHO they need to tread carefully over the next year.

I can't see the logic in offering 100% mortgages and I shall be raising the issue with the Chief Executive at the AGM.

At the last AGM he was proud to be "Mr. Cautious" compared to other irresponsible lenders who he took delight in slagging off.