Coventry for Intermediaries is temporarily closing its tracker rates in anticipation of the Bank of England’s interest rate decision on Thursday.
The Coventry will be pausing the products as of 8pm tomorrow (Wednesday 13th December).
Ian Biggs, head of product performance at Coventry Building Society, said: “We’re temporarily pausing tracker rates to recalibrate our products in preparation for the Bank of England meeting later this week.
“We are committed to our pledge of giving brokers two days’ notice before any rate amendments as we know this is something brokers really value.
“Our service hasn’t been impacted by the popularity of our products, and we anticipate new products will return to the range soon.”
Lewis Shaw, owner and mortgage broker at Riverside Mortgages, said the move makes sense in light of the upcoming interest rate decision.
He said: “It’s unsurprising that with another Bank of England Monetary Policy Committee meeting on Thursday, lenders are starting to reassess their product ranges.
“Coventry Building Society is on the money by removing its product range the night before the base rate hike.
“I’ve been trying to convince prospective remortgage clients that it would make sense to submit deals before
“Thursday so that we can secure a rate and then reassess if that’s the best product when the dust settles from this next hike.
“I’m sick of hearing my own voice, as with some prospective clients, it can be like talking to a brick wall.
“Yet here we are with the start of the emails brokers receive before we have another round of repricing.
“One day clients will believe what experienced brokers say; until then, expect more panicked phone calls come Friday.”
While Paul Neal, mortgage & equity release specialist at Missing Element Mortgage Services, expects other lenders to follow suit: “I don’t think Coventry will be the first or last lender to do this.
“As fixed rates have rocketed, we are finding more and more clients opting for variable and discounted rates.
“Even with the looming Bank of England rate increase, they are still a much more attractive option than a fixed rate.”
