Coventry - Flexx for term

Waldorf_Statler

I recently switched to this product and was pleasantly surprised to see the latest rate cut passed on to the variable rate. Of course, they will just as quickly pass on any increases but it was an unexpected bonus.

RhysHSCC

The Coventry haven't increased the rate on their variable rate mortgage sincr approx 2007, and immediately passed on the recent cut to EE and existing borrowers

getmore4less

Spangled wrote: »

I saw that too. On the face of it, it looks pretty good. That said, you're comparing a lifetime variable rate with a 5-year fix, which is a bit of an apples and oranges comparison.

As long as you understand the parameters and assumptions you can do valid comparisons.

with a fix against a variable you can start with the period of the fix and assume the variable rate won't change.

If the variable rate comes out best you can then analyse the rate rises that would result in break even.

With a set of scenario you can assess.
Tracker can be the risk adverse option people make the fatal error of assuming fixes are low risk when in many cases with proper analysis they can be the higher risk option.

Then consider the softer variables like, will you move, how much can you pay, overpayment limits, no need to change again as long as the rate remains competitive, portability job security, income projections(like maternity)...

Low margin trackers/variable(<+2%) have been a good choice for years, those that switched to the <+1% have not looked back and even when(if) rates rise they probably won't need to switch unless looking at very good long term(10y) rates.

until recently switching off the Nationwide +2% was something people were generally advised to consider very carefully unless really needed, now there are better options those that don't need the other benefits of BMR could consider a switch to a lower margin variable.

JerryF

We've used the BTL Coventry / Godiva Flexx products for a number of years, changing products as the rates decrease (and as the equity in the property increases). We were nervous initially that the terms do not specify what the Flexx tracks, and that it is sold as a variable rate. In reality it has tracked the BOE base rate, and in August 2016 when the BOE cut rates by 0.25% to 0.25% the Coventry Flexx rate dropped 0.25% too. We are about to take a new Flex product 1.59% 50% LTV with a high £1999 fee based on this past experience (moving down from 2.54 Flexx) The monthly interest cut will pay for the £1999 fee after 20 months, and then the interest saving will continue for the 19 years term saving in excess of £20k over 19 years. The fee can be added to the loan, but we'll probably pay it now rather than borrow it.