Coventry Building Society will be making changes to its mortgage rates, effective from 8am on Friday, 1st September.
The existing range of mortgage products will be closed at 8pm on Thursday, 31st August. This update is in alignment with the lender’s commitment to provide a two-day notice prior to any product changes.
In the residential sector, the lender will be reducing all 2-year fixed new business rates, excluding the 65% loan-to-value (LTV) remortgage rate with no fee and the 80% LTV purchase rate with no fee.
All 3-year fixed new business rates will be reduced as well, apart from the 65% LTV remortgage rate with a £999 fee, and specific 75% and 80% LTV rates. All 5-year fixed new business rates will also be cut, along with reductions in rates for existing customers, with some exceptions.
For buy-to-let (BTL) mortgages, the 2-year fixed BTL and Portfolio BTL new business rates will be reduced, with the exception of the 65% LTV remortgage rate with no fee. The 5-year fixed BTL and Portfolio BTL new business rates will also see a reduction, apart from the 65% LTV purchase and remortgage rates with no fee.
Existing customer rates for 2-year and 5-year fixed BTL and Portfolio BTL will also be reduced, with certain exceptions for 50% and 65% LTV rates.
Reaction
Nick Mendes, mortgage technical manager at John Charcol:
“Despite the recent uptick in Swaps rates Coventry Building Society have decreased their fixed rates across the board which is great to see.
“While some lenders have repriced upward Coventry Building Society has taken the opportunity to be slightly more competitive.
“Coventry Building Society fixed rates are not market-leading so the latest development will see them edge slightly higher up the table.”
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“These reductions from the Coventry are great news and show that lenders really are trying to keep the mortgage and property market moving, despite the numerous headwinds.
“Aside from Accord raising its buy-to-let product transfer rates, there haven’t been any rate rise notifications in well over four weeks. Hopefully, this will be a continuing trend for the foreseeable future.”
Graham Cox, founder at Self Employed Mortgage Hub:
“More good news for mortgage borrowers with Coventry reducing their rates, including at higher loan-to-values. With UK swap rates falling, the outlook, if not exactly rosy, is at least a tinge of pink.”
Riz Malik, founder & director at R3 Mortgages:
“Coventry joins the other lenders eager to inject life into the residential and buy-to-let markets with these welcome rate reductions.
“They won’t stimulate wholesale activity on their own but they will certainly add to the downward momentum in pricing we’re currently seeing.”
