Hi Guys,
I've just spoken to Coventry BS regarding their 4.99% Flexx mortgage. They told me that this rate is variable but is guaranteed to not got over their mortgage base rate. What I can't get my head around, and they didn't seem very open on this, is how long the 4.99% (or indeed any "lower than base rate" rate) will hold for. I was told that the rate had been low since the mortgage was started (not sure when this was,) but that it would go up if the BoE raises the interest rate again.
My question is, is it likely that this is just an attraction that is in place for a month or so, then they hike the rate to their standard variable rate? I don't want to end up spending money on transfer fees etc, only to find their rate goes up, and I could have got the same deal from my existing lender (i.e. std variable) without the costs of transfer.
Many thanks for your time, Steve.