Coventry for intermediaries is returning to the interest-only market with a new range of fixed and offset products for residential borrowers.

The new products are available on two- and five-year fixed rate terms to a max of 50 per cent LTV.

Borrowers must must also have a minimum of £300,000 equity left in the property after the mortgage amount required has been considered.

There’s no minimum income requirement on the products, but borrowers will need to demonstrate that they have sufficient income to support an equivalent repayment mortgage and meet all the repayment affordability checks.

Evidence of an acceptable repayment plan which could be the sale of investments or a property, or a pension lump sum is required by the lender, based on current value, not projected forecasts.

The new range includes:

Interest-Only

2 Year Fixed – 1.47% to 31.12.22 – £999 fee (ERCs apply)

5 Year Fixed – 1.95% to 31.12.25 – £0 fee (ERCs apply)

Interest-Only Offset

2 Year Fixed – 2.29% to 31.12.22 – £0 fee (ERCs apply)

5 Year Fixed – 2.15% to 31.12.25 – £999 fee (ERCs apply)

Coventry Building Society head of intermediary relationships Jonathan Stinton says: “Now, more than ever before, borrowers are looking for control over their finances so we’re pleased to be re-entering the interest-only market.

“Interest-only products are ideal for borrowers who would like to reduce their monthly mortgage payments or free up cash that they can use in other ways. With our products, there’s also the option of using the sale of the property to repay the loan which makes downsizing a realistic option for repayment.

“Our Interest-only Offset combines the freedom of interest-only with the flexibility of offset. Borrowers will be able to access their savings whenever they need to and they may be able to borrow more at the same rate.”