Lender also lowers rates across its residential and BTL product ranges
Coventry for intermediaries has introduced a five-year fixed rate mortgage at 3.90%, joining other lenders that have recently launched new rates or dropped existing rates at sub-4%.
The new five-year fixed rate is available for residential purchases at a loan-to-value (LTV) ratio of 65% and comes with a £999 product fee.
The lender is also offering a 4.53% five-year fixed rate, also at 65% LTV, with no product fee for buy-to-let remortgages. Customers can choose between a £350 cashback option or use Coventry’s remortgage transfer service.
Alongside the new sub-4% product, the lender has also lowered rates across its residential and buy-to-let product ranges.
Residential mortgage rates have been reduced by up to 52 basis points, while buy-to-let rates have seen reductions of up to 25 basis points.
Last week, Coventry Building Society was one of the first lenders to announce a 0.25% reduction in variable mortgage rates, following the Bank of England’s latest interest rate decision. Since then, several lenders – including major banks – have announced sub-4% rates, signalling the start of a new rate war in the mortgage market.
“Seeing sub-4% rates back on the table is a great sign for the market and could lead to more activity in the latter part of the year,” said Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society.
“Last week’s Bank of England decision was the welcome news borrowers had been waiting for, and the sweep of rate reductions which has happened since should hopefully generate confidence among those looking to secure a new mortgage deal in the coming months.”
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