The MOREgage combines a five-year fixed rate on 95 per cent LTV and an unsecured personal loan facility of up to 30 per cent.
Interest rates on both portions are fixed until 30 July 2009 and range between 6.49 per cent on loans up to 105 per cent LTV rising to 6.79 for borrowers opting to take 116 to 125 per cent. The maximum total loan is £250,000.
Borrowers must be over 21 with a minimum single income of £15,000 or £20,000 joint but the income multiples stretch to 4 times single income for borrowers with a salary of £20,000 or above and 3 times income for joint applicants.
Coventry join other lenders Bristol & West (110 per cent) and Northern Rock (125 per cent) who have also shown a willingness to lend over 100 per cent.
David Stewart, operations director at Coventry Building Society, said: “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.”
Coventry surveyed 1,002 non-homeowners and discovered that despite the fact 45 per cent preferred to save for a deposit nearly 30 per cent expected to get a loan instead.
The majority of non-homeowners also prefered to save to furnish their homes although a quarter said they were prepared to take out a loan or resort to credit cards.
