Coventry launches 'fix and track' product

The Coventry Building Society has launched a new 'fix and track' product which will commence with an interest rate of 5.89 per cent.

This will be fixed until December 31st 2008, at which point the rate will revert to 0.49 per cent above the Bank of England base rate for the rest of the term.

Remortgagers will see a benefit from the deal due to the availability of free legal facilities, while free valuation is also on offer.

Borrowers can take out the Coventry fix and track product to cover up to 95 per cent of the value of their property.

A £199 booking fee is payable, along with an £800 arrangement fee and early repayment charges (ERCs) of four per cent of any balance repaid before the fixed-rate period comes to an end on December 31st 2008.

Colin Franklin, head of sales at the Coventry, said: "The new fix and track product is a compelling combination – it's ideal for borrowers who want the benefit of securing their rate against short-term interest rate increases, but with the long-term benefit of a tracker rate for the rest of their mortgage term.

"Unlike other fixed rates with trackers currently on offer, our product has no overhanging ERCs after the initial fixed period."

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