The offset loan is offered at 3.19% until 30 June 2026 at up to a 65% loan-to-value (LTV). Another residential 10-year fix is available at 2.99% to the same time frame and LTV.
Darin Landon, distribution director, said: “We’re delighted to launch our new 10-year fixed mortgages, including the only 10-year fixed offset product on the market – this offers the security of a competitive rate and the benefits of an offset product.”
Early redemption penalties on the loans start at 5% until 2021, dropping to 1% until 2026.
Andrew Montlake, director at Coreco, said: “This is another good product from Coventry which continues to offer more interesting products backed with continued good service. The only way 10-year products are going to finally inspire the public is if they have flexibility built in and an offset product is a good way of doing this.
“It will be interesting to see how well this product does, but it is a welcome addition,” he added.
In July, the mutual reported a 25% year-on-year increase in mortgage advances in H1 to a record high of £4.2bn. Gross mortgage lending totaled £3.4bn in the first half of 2014.