Coventry is improving its range of products for first-time buyers.
The societys MOREgage product is a combined mortgage and unsecured personal loan that gives first-time buyers and movers the ability to not only purchase their house, but also the capacity to cover additional associated costs.
With a high average house price making it increasingly difficult for first-time buyers to step onto the property ladder, MOREgage offers a mortgage of up to 95% LTV, with an added unsecured personal loan facility of up to a further 30% – all at the same rate of interest.
Key features of the highly competitive MOREgage products are 5.99% capped (+1.45% base rate tracker) until March 31 2009, 5.89% fixed until March 31 2011, and 5.89% fixed until March 31 2009.
Maximum LTV for mortgage is 95%, and the maximum loan for unsecured loan is 30% LTV or 25,000 (whichever is lowest).
Early redemption charges for mortgage (during benefit period) is 4%, and there is no early redemption charge for unsecured personal loan.
Each MOREgage product has a booking fee of 199, an arrangement fee of 250 and offers a free valuation. Borrowers also have the option to repay 10% of mortgage balance per annum without penalty.
In addition, there is no higher lending charge on any of the products worth nearly 2,000 on the average UK mortgage.
The society is also launching a 5.50% fixed rate exclusively for first-time buyers. The rate is fixed to March 31 2009, offers a free valuation, has no higher lending charge and the option to pay 5% of the mortgage balance per annum without penalty. This product is available up to 100% LTV.
Julie Jones, head of intermediary sales at Coventry, says: “We recognise that the rise in house prices has made it increasingly difficult for first-time buyers to step onto the property ladder.
“We believe the improvements we have made to our highly popular first-time buyer products are another demonstration of our commitment to offering introducers the best products for their clients.”