Variable Rate for Lifetime - an oxymoron?

FixitFox3

How can a mortgage (Coventry Flexx for Term) be advertised as a rate for lifetime (1.49%), when it is Variable? Surely no-one knows how this will vary, so this rate is meaningless?

getmore4less

The lifetime variable are mostly(all?) trackers that have a defined rate for the life of the Mortgage.

eg. BOE base+X% (some use other base rates).

this is different to a rate that is for part of the term(fixed, discount on variable...) with a follow on rate for the rest of the lifetime of the mortgage term.

Thrugelmir

The product title - Flexx for Term - seems explicit too.

If it wasn't variable then it would be described as Fixed.

amnblog

It's called Flexx I believe because you can overpay without penalty, not because it may vary.


The product tracks the Coventry base rate for the life of the mortgage.


The rate is therefore Lifetime in that it is valid for the life of the mortgage (other than say 2 years)

Sasahara

The main issue with the Coventry rate is they set the rate, so it can change at any time. As they are a Mutual it only likely to change if their borrowing costs goes up like the bank of England rate or the inter bank rates change.

So there is a small risk of higher rates without a BoE rate change.

The rate is defiantly not fixed for life, though it's possible for it to never change. A brief look shows it has a small penalty for early repayment. So you can get out of it if it did start to get a too high a rate. Being a Mutual it's primary goal is to serve you the customer, not any shareholders.