Cahoot sets up mortgage trial

Internet bank cahoot has announced that it is offering a set of mortgages, only available by telephone, in association with parent company Abbey.

The trial fixed rate, tracker and flexible mortgages will carry on until early next year and if the trial is successful then cahoot intends to produce its own independent mortgages, which should be available online as well as by telephone.

John Goddard, managing director of cahoot, said: "With this new range of competitive mortgages, we're dipping our toe in the market and testing the demand for mortgages from cahoot.

"As these mortgages are currently only available over the phone, they will really suit people who are comfortable without face-to-face help from a mortgage adviser. These are some of the best rates on the market and we hope the trial will prove popular."

Each mortgage gives the customer a choice of either a lower booking fee and a higher interest rate or a higher booking fee and a lower rate.

The Flexible Plus mortgage also allows customers to make overpayments, underpayments and payment holidays and it has an offset facility, which reduces interest payments and enables borrowers to pay off their mortgage early.