To meet the continuing demand from potential homeowners in a highly priced housing market, Coventry Building Society has launched MOREgage – a combined mortgage and unsecured personal loan aimed at both first time buyers and first time movers. The new product will offer borrowers the ability to not only purchase their house, but also to cover associated costs such as funding a deposit, home improvements or purchase of furniture/appliances.
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% loan to value, with an added unsecured personal loan facility of up to a further 30% - all at a competitive fixed rate of interest - giving home buyers the opportunity to effectively borrow up to 125% of the value of their new home.
Coventry’s research revealed that when it came to finding a deposit for their home, 45% of non-homeowners said that they would save for their deposit and nearly one third (30%) said that they would take up a personal or bank loan facility.
When it came to furnishing their home, 51% of non-homeowners said that they would save for the things they need, but nearly a quarter (23%) said that they would furnish their homes through a personal or bank loan, or by using their credit card.
“As UK average house prices have continued to rise”, said David Stewart, Operations Director for Coventry Building Society, “there is some evidence that rather than saving for a deposit or furnishings, as is traditionally the case, people are borrowing the money they need.
“As a responsible lender, we believe the MOREgage product offers homebuyers the opportunity to borrow within their means, at fixed rates of interest, knowing that for the first five years after moving into their new home there will be no unexpected surprises through escalating repayments should interest rates rise” he added.
Customers wishing to apply for MOREgage should telephone the Customer Service Centre on
0845 7665522.
Mortgage Introducers should telephone the Coventry Intermediary Sales Team on 0845 776 7825.
