Cautious Coventry BS re-enters the 90% market.

Conrad

Further evidence of market hardening, in the guise of a relaxing of policy by the uber cautious Coventry BS.
Only Coventry account holders because they would be swamped with applications otherwise.


Mortgages from the Coventry First Time Buyer Members' Fixed Rate Mortgage - FTM01

Product nameFirst Time Buyer Members' 5.99% Fixed rate to 30.09.14Current rate5.99%Term5.99% Fixed rate until 30.09.14Followed by Privilege Rate for the remainder of the mortgage, current applied rate 4.49%.The overall cost for comparison is5.3% APR

Fees/incentives
(Fees will not be refunded)Booking Fee: £199.00 (paid on application)
Arrangement Fee: None
ONE FREE mortgage valuation to max. £640.00
£500 Ikea Gift Card (issued on completion)Early repayment charges4.00% of the balance repaid until 30.09.14
You can repay up to 5% of the capital p.a. without an early repayment charge.Maximum loan to value (LTV)90%Interest chargedDaily

Really2

Conrad wrote: »

Further evidence of market hardening, in the guise of a relaxing of policy by the uber cautious Coventry BS.
Only Coventry account holders because they would be swamped with applications otherwise.


Mortgages from the Coventry First Time Buyer Members' Fixed Rate Mortgage - FTM01

Product nameFirst Time Buyer Members' 5.99% Fixed rate to 30.09.14Current rate5.99%Term5.99% Fixed rate until 30.09.14Followed by Privilege Rate for the remainder of the mortgage, current applied rate 4.49%.The overall cost for comparison is5.3% APR

Fees/incentives
(Fees will not be refunded)Booking Fee: £199.00 (paid on application)
Arrangement Fee: None
ONE FREE mortgage valuation to max. £640.00
£500 Ikea Gift Card (issued on completion)Early repayment charges4.00% of the balance repaid until 30.09.14
You can repay up to 5% of the capital p.a. without an early repayment charge.Maximum loan to value (LTV)90%Interest chargedDaily

Kind of goes with the debate yesterday.

If one does it more will follow.

5.99 is a good 5 year fix though.

chucknorris

Conrad wrote: »

Further evidence of market hardening, in the guise of a relaxing of policy by the uber cautious Coventry BS.
Only Coventry account holders because they would be swamped with applications otherwise.


Mortgages from the Coventry First Time Buyer Members' Fixed Rate Mortgage - FTM01

Product nameFirst Time Buyer Members' 5.99% Fixed rate to 30.09.14Current rate5.99%Term5.99% Fixed rate until 30.09.14Followed by Privilege Rate for the remainder of the mortgage, current applied rate 4.49%.The overall cost for comparison is5.3% APR

Fees/incentives
(Fees will not be refunded)Booking Fee: £199.00 (paid on application)
Arrangement Fee: None
ONE FREE mortgage valuation to max. £640.00
£500 Ikea Gift Card (issued on completion)Early repayment charges4.00% of the balance repaid until 30.09.14
You can repay up to 5% of the capital p.a. without an early repayment charge.Maximum loan to value (LTV)90%Interest chargedDaily

I haven't been looking at mortgage deals as recently I decided not to invest further, so I am not up to date with deals (and wasn't in the FTB market anyway), but that seems like a decent enough deal. I was expecting a sting in the tail with the arrangement fee, but £199 (booking fee) seems reasonable.

the_ash_and_the_oak

Does it say how much it'll lend on a 40k salary w 10% deposit?

Would be interesting to compare w HSBC

chucky

Demanufacture wrote: »

As with all these deals at this time, it gives a good headline but when it's scrutinised a little more it isn't what it appears, there is always some catch like, you have to an account holder, you have to be this or that.

Until these deals are freely available with no catches it means little apart from those who are swayed by the sentiment of a headline. Coventry can't make it freely available because it doesn't have the funds to do so, the money no longer exists and if we enter a period of deflation, money supply will be decreasing, as we know QE is being hoarded and not lent.

not in the real world...

In addition, secured lending by banks, excluding the effects of securitisations, increased by £2.7bn over August, above the £2.3bn increase seen in July and in line with the six-month average of £2.6bn.

Meanwhile, the number of loan approvals for house purchase reached 52,317, which was in line with the July figure and above the previous six-month average.

http://www.ftadviser.com/FTAdviser/Regulation/Regulators/Treasury/News/article/20090929/b0163e44-acd9-11de-9695-00144f2af8e8/Mortgage-lending-rose-by-1bn-in-August-according-to-BoE.jsp

Conrad

Demanufacture wrote: »

Until these deals are freely available with no catches it means little apart from those who are swayed by the sentiment of a headline.

It's about momentum and market direction though. The take home message is that slowly slowly lending is re - expanding.

In time this will suck in foreign investment funds as the spreads / profits on UK mortgages has vener been higher, and in reality the RISK IS VERY LOW (sorry to shout) as repos are far less than 1% and for lenders like Nationwide far less than 0.3%.

Graham_Devon

Hmmm. Ok if you can get it I suppose. Which is a fairly small number in the grand scheme of things.

Until these deals become mainstream, I'm still quite happy to say we are not out of the woods by any means yet.

Thrugelmir

Conrad wrote: »

In time this will suck in foreign investment funds as the spreads / profits on UK mortgages has vener been higher, and in reality the RISK IS VERY LOW (sorry to shout) as repos are far less than 1% and for lenders like Nationwide far less than 0.3%.

What evidence is there to support this?

Other than Bank of China who are lending on a very conservative basis.

Conrad

Thrugelmire - the same evidence that provides stock market momentum

A key traite of perma pessimists is this constant clarion call for evidence. Well that's 6th form economics stuff. If you wait long enough you will eventualy get your beloved evidence, but twill be far to late to bag a bargain.

I made this point over and again last year yet PP's always ignore it as some side show. PP's are in love with backward looking out of touch academic stats. You don't make good investment decisions by looking backwards - you have to think ahead and well before the evidence.

Thrugelmir

Conrad wrote: »

Thrugelmire - the same evidence that provides stock market momentum

A key traite of perma pessimists is this constant clarion call for evidence. Well that's 6th form economics stuff. If you wait long enough you will eventualy get your beloved evidence, but twill be far to late to bag a bargain.

I made this point over and again last year yet PP's always ignore it as some side show. PP's are in love with backward looking out of touch academic stats. You don't make good investment decisions by looking backwards - you have to think ahead and well before the evidence.

Agree you don't make good investment decisions by looking backwards. But you can looking forwards by understanding the past.

I asked a question that I thought being in the field you are. You would be in touch with. Obviously not.

Really2

Graham_Devon wrote: »

Hmmm. Ok if you can get it I suppose. Which is a fairly small number in the grand scheme of things.

Until these deals become mainstream, I'm still quite happy to say we are not out of the woods by any means yet.

There seems to be 10 90% LTV deals now ranging from 3.89%(2 year tracker) to 6.59%(10 year fixed).

I am surprised there are so many already.