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Coventry launches capped rate option

Coventry is adding a capped rate product to its MOREgage range, making it the only capped rate in the 100%-plus lending market.

The product is a three-year base rate plus 0.84% tracker but has a capped rate of 6.29% until March 31 2010. It comes with free valuation, a £199 booking fee and £800 arrangement fee. There is no higher lending charge and borrowers have the option to repay 10% of the mortgage balance per year without penalty.

There is a 4% early repayment charge for the mortgage but no charge for the unsecured personal loan.

Colin Franklin, head of sales at Coventry, says: “Our popular MOREgage products offer the combination of secured and unsecured lending – a 95% LTV mortgage and up to 30% personal loan.

“The introduction of the capped product gives borrowers the best of both worlds – a cap should rates rise and a reduction should rates fall.”

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England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

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