Coventry Building Society will be introducing further mortgage rate cuts as of Friday, the 15th of September.
The society informed brokers that it will be reducing all fixed new business and existing customer only rates at 50% to 80% loan-to-value (LTV), including offset, interest-only, offset interest-only products.
Coventry will also be reducing all tracker rates at 65% and 75% LTV, along with all fixed buy-to-let (BTL) and portfolio BTL new business rates.
In addition, all BTL and portfolio BTL tracker rates, and all 2-year fixed BTL and portfolio BTL existing customer only rates excluding 50% and 65% LTV rates will also benefit from the reduction.
Reaction:
Gary Bush, financial adviser at MortgageShop.com:
“These latest mortgage rate cuts are further evidence that lenders have moved from shut-up-shop mode to full-blown price war mode.
“This is great news for all mortgage applicants.”
Graham Cox, founder at Self Employed Mortgage Hub:
“There are two reasons for the recent spate of mortgage rate cuts, with the Coventry the latest lender to announce.
“First, UK swap rates continue to steadily edge down, as it becomes clearer by the day we’re at, or very close to, the peak in interest rates.
“Second, mortgage transaction levels are about a third down on last year, and lenders are fighting over the scraps.”
Jamie Alexander, mortgage director at Alexander Southwell Mortgage Services:
“This news is very welcome as we have many clients who have products ending with Coventry and are unable to change lenders due to their limited company director status.
“The current price war is only good news for borrowers.
“Swap rates are consistently decreasing, indicating that we are either currently at, or extremely close to, the highest point in interest rates.
“Secondly, mortgage activity has dropped compared to the previous year, leading to intense competition among lenders for the remaining business.”
Nicholas Mendes, mortgage technical manager at John Charcol:
“Coventry are quickly revising their proposition following Nationwide’s reductions yesterday.
“Both Nationwide and Coventry lead the way in fixed rate pricing, so this quick announcement is encouraging to see.
“It’s unlikely we will see others follow Nationwide and Coventry approach to win business with mirroring pricing, but good news for those with a current application with both lenders or at the beginning of their journey.”
