Coventry Building Society has announced plans to increase its mortgage rates, citing prevailing market conditions.
The changes, which will impact both new and existing business, will come into effect from 8 am on Friday, 16th June.
Coventry continues its commitment to provide customers and brokers with a 48-hour notice period for such changes, an action commended by industry insiders.
As part of the changes, all fixed rates including offset, interest-only, and offset interest-only (excluding Green Further Advance rates) will be increased. In addition, all tracker rates will be withdrawn. In the buy-to-let (BTL) sector, all fixed rates will be increased, except for Green Further Advance rates, and all tracker rates will be closed.
Jamie Lennox, director at Dimora Mortgages, acknowledged the market pressures driving the changes. “With current market conditions, rate increases are unavoidable for most lenders as they all need to maintain a profitable business model,” Lennox said. He applauded Coventry for giving 48 hours’ notice, adding: “We need more lenders to follow in Coventry’s footsteps and back the #24hourpledge launched by The Broker Collective.”
Gary Boakes, director at Verve Financial, agreed: “What is commendable about Coventry is that they are finding a balance between doing that but giving potential new customers and brokers enough time to secure those rates.”
Anil Mistry, director and mortgage broker at RNR Mortgage Solutions, echoed this sentiment: “Coventry are aligning with the prevailing trend and adopting the practices of other lenders in light of current conditions, so this announcement comes as no surprise. Nevertheless, it is commendable that they have once again demonstrated their praiseworthy attribute of providing a 48-hour advance notification.”
Graham Cox, founder at SelfEmployedMortgageHub.com, pointed out that this is Coventry’s second rate increase in just three working days due to daily rises in UK gilt yields and swap rates. He lauded Coventry’s decision to provide advance notice: “If only other lenders would take note, it would make life much easier for brokers and much fairer for consumers.”
