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.”