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Cahoot joins mortgage market

From October 7 2005, cahoot will offer customers a range of mortgages including fixed rate, tracker and flexible.

The mortgages, provided in conjunction with parent company Abbey, are only available over the phone.

cahoot is offering a two year tracker at 4.34% (base 0.16%) with a 699 booking fee and 95% maximum LTV, and a two year tracker at 4.34% (base + 0.04%) with a 499 booking fee and 95% maximum LTV.

A two year fixed at 4.49%, with a 699 booking fee and 95% maximum LTV, and a two year fixed at 4.69% with a 349 booking fee and 90% maximum LTV are also available via cahoot.

The online bank is also offering a flexible plus at 4.90% (base + 0.40%) with a 699 booking fee and 90% maximum LTV, and a flexible plus at 5.25% (base + 0.75%) with a 149 booking fee and 90% maximum LTV.

John Goddard, managing director of cahoot, says: “With this new range of competitive mortgages, were dipping our toe in the market and testing the demand for mortgages from cahoot.

“As these mortgages are currently only available over the phone, they will really suit people who are comfortable without face-to-face help from a mortgage adviser.

“These are some of the best rates on the market and we hope the trial will prove popular.”

The cahoot mortgage trial will continue until early next year. If the trial is successful, then cahoot intends to introduce its own fully-fledged mortgages, which are likely to be available online or over the phone.

Each mortgage offered through cahoot comes with a choice of a lower booking fee and a higher rate or a higher booking fee and a lower rate. The Flexible Plus mortgage also offers flexible features such as overpayments, underpayments and payment holidays. It comes with an offset facility, which can reduce the amount of interest owed and help a borrower pay off their mortgage early.

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