Coventry BS Flexx for Term Remortgage

MallyGirl

Hi

I have been with the same mortgage provider for many years as I really liked the flexibility of the offset style (One Account). I can see that the mortgage rate is much higher than some out there so I am considering remortgaging. I intend to borrow more than the outstanding balance on the current mortgage as I have a fair amount stoozed on 0% cards which will need repaying at various points over the next 2 years.

Having looked around I came across the Coventry Flexx for Term at 1.39% variable rate for term. This seems like a no-brainer, even with a £999 product fee, but maybe I am missing something. I currently pay 3.9%

I would be looking to borrow £200k against a property worth £1m and affordability won't be an issue.

There is no ERC so if they suddenly bumped up the variable rate I could move again - what am I missing? Usually if it looks too good to be true then it is.

The next best alternative was Santander 5 yr fix at 1.79%.

Theguywhovapes

It’s pretty much what it says. One thing to remember though that it is not a base rate tracker. It’s set independently of the company’s SVR and BBR. Being a variable it can rise and fall at any time but you will always get notice of this

Hope this helps

amnblog

I don't see how a 5 year fixed is an 'alternative' to a term variable.

If you have been paying 3.9% it suggests you have not had advice from a broker for some time.

Get some.

MallyGirl

how very blunt. Should I choose to consult a broker I would hope that they had more interpersonal skills than you.
I knowingly accepted the rate on the basis of the flexibility it gave me in terms of significant home improvements and vehicle purchases. I no longer need that type of flexibility so I am looking for alternative options.

YHM

Are you choosing that rate because its an offset? If so, its at 1.59% and there are cheaper rates available.

My peer does raise a good point though. You cannot bench a variable rate against a 5 year fixed. They are complete opposites.

MallyGirl

Flex term is not an offset and it is 1.39% for my LTV.
My current mortage is an offset at a known (to me) poor rate

yes I know that they are very different. It was the best off the shelf deal I had found until the Coventry one popped up after different search criteria.
I am only after a 10 year term with 20% LTV so Santander 5 years fixed would give certainty, at a higher rate, for half the term whereas Coventry is lower but could rise.

YHM

And you are comfortable with off the shelf?

A broker could get you a better rate, saving you interest....

MallyGirl

That message is getting through. I will try and see what a broker can do for me.