Lender to launch new products
For the second time in days, Coventry Building Society has announced that it is increasing the rates of selected products.
In line with its commitment to give intermediary partners two days’ notice of product closures, the lender informed brokers this morning that it would be closing its products at 8pm on Monday, June 19.
Coventry said it would be launching new products at 8am on Tuesday, June 20.
To be affected by the rate changes are all green residential further advance rates, as well as all buy-to-let and portfolio BTL green further advance rates.
“These are the products that didn’t change during the week, so this is an inevitable catch-up from the lender, and to be honest will affect very few clients,” commented Justin Moy, managing director at EHF Mortgages. “There are more significant issues currently than green further advances within the mortgage market.
“Still, Coventry Building Society give us 48 hours’ notice, which is always to be applauded.”
Read more: Coventry Building Society Mortgage Rates
Since a number of lenders have been pulling mortgage products from the market – some at very short notice, brokers have been calling on lenders to provide a minimum notice of 24 hours before discontinuing any mortgage product.
Riz Malik, director at R3 Mortgages and one of the initiators of the 24 Hour Product Withdrawal Pledge campaign, said the two days’ notice commitment made by Coventry is “held in high regard by brokers nationwide and is deemed a model of excellence for the mortgage industry.”
“That is why the #24hourpledge is something we are encouraging all UK mortgage lenders to adopt,” Malik added. “It remains unclear to many of us why a lender such as Coventry can provide a 48-hour notice period when withdrawing mortgage deals, while others, including a number of high street lenders, only offer a few hours’ notice.”
Days ago, Coventry also announced rate increases on selected residential and buy-to-let mortgages, but also provided a two-day notice to brokers before pulling out the said products.
“The Coventry deserves a huge amount of credit for consistently honouring its pledge to give two days’ notice ahead of any rate changes,” remarked Rob Gill, managing director at Altura Mortgage Finance. “From the early panic of the pandemic through to the outright chaos of the mini budget and the turbulence we’re seeing at the moment, this pledge from Coventry is a massive benefit to borrowers, brokers, and no doubt, their own staff.”
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