Coventry Building Society informed brokers this morning that it will be introducing a number of rate changes as of 8am on Friday the 28th of July.
In its residential range, the Society will be reducing all of its 2-year and 5-year fixes.
As part of its buy-to-let offering, all of its fixed buy-to-let and portfolio landlord buy-to-let rates will also see a reduction.
These reductions come as a number of lenders have begun to reduce rates following a dip in inflation last week and a slow stabilisation in swap rates.
Additionally, the Society also announced that it would be increasing rates across its residential and buy-to-let Flexx Fixed product transfer range for existing customers.
Reaction:
Lee Gathercole, co-founder at Rebus Financial Services:
“Some more good news on the mortgage front.
“It’s great to see lenders like Coventry following HSBC and Accord by dropping interest rates, and let’s hope we see more competitive pricing in the near future.
“It’s early days, but with inflation starting to edge down I think mortgage holders and first-time buyers can start to gain a little confidence again.”
Riz Malik, founder and director at R3 Mortgages:
“It’s encouraging to see a popular lender among brokers embracing the trend of lowering rates, and we can only hope that this triggers a domino effect across the rest of the mortgage industry.
“We all anxiously await the upcoming base rate announcement from the Bank of England, hoping for no unexpected surprises so the run of rate reductions can continue.
“For now at least, things are looking brighter for borrowers.”
Craig Fish, director at Lodestone Mortgages & Protection:
“More overdue good news for the UK mortgage industry after what feels like a long siesta.
“I expect similar news to arrive like buses for the rest of the week with more lenders making similar reductions.
“I do believe we need to tread with caution though and not get too overexcited whilst we await the next base rate announcement from the MPC and the eagerly awaited inflation data, as that could change everything.”
Russell Maggs, mortgage and protection adviser at Maggs Financial Services:
“Lenders, please don’t make us wait for rate reductions.
“Get those out now and give us breathing space on rate increases. Some of us leave for a holiday on Friday.”
Peter Stamford, director and lead adviser at Moor Mortgages:
“They give with one hand they take away with another. This is good news for new customers and bad news for existing ones.”
Graham Cox, founder at SelfEmployedMortgageHub.com:
“Coventry, who are one of the more progressive lenders, are following hot on the heels of HSBC in reducing their fixed rate mortgages.
“This is hugely welcome news, and it is likely other major lenders will follow suit over the coming days and weeks.
“Nevertheless, rates remain very high and will need to fall much further to significantly ease the pain for borrowers.”
Laura Bairstow, founder at The Mortgage Masters:
“After months of rates only going one way, it’s refreshing to see the likes of Coventry BS, HSBC, Accord and Platform reducing theirs! Let’s hope we get an influx of other lenders following suit.
“Homeowners still need to be aware that they’re likely to face significant rate increases from what they’ve become accustomed to when they come to remortgage.
“Whilst these rate reductions are welcomed, it’s still only a drop in the ocean.”
Rohit Kohli, operations director at The Mortgage Stop:
“We’re starting to see the main lenders reduce rates now and this is further welcome news.
“It will bring some relief to clients who are very stressed about where their mortgage payments are going.
“Existing Coventry customers whose rates are about to end I am sure will be perplexed about why rates for them are increasing and I would urge them to shop around.
“All eyes are on next Thursday now to see what the BoE do – my fingers are crossed for some stability but I think inflation still needs to come down further before we see an end rate rises from Threadneedle Street.”
