Date:Tuesday 4th January 2011
Author: Max Freedman
A representative from Coventry Building Society has suggested an interest rate rise could be on the cards for mortgage holders.
Colin Franklin, sales and marketing director at the company, made his remarks after the firm lauded the security offered by capped products.
He said: “The base rate is expected to rise, but no-one knows when and by how much.”
In his opinion, a capped home finance deal is a great way for people to protect themselves from significant base rate rises.
However, Mr Franklin pointed out that consumers who do not think the levy will increase in the near future could opt for a tracker arrangement.
The Coventry Building Society representative lauded a two-year deal at +1.79 per cent interest at up to 65 per cent loan to value.
Mr Franklin recently claimed the company’s pledge not dual price its products has gone down well with brokers, noting that the organisation was the first in the intermediate sector to make such a promise.