Brokers welcome timing of new rate cuts
Coventry for intermediaries has announced rate reductions of up to 23 basis points on selected fixed rate residential and buy-to-let products.
Rates were slashed on a number of two-, three-, and five-year fixed rate deals at 65% to 95% loan-to-value (LTV), including a 4.92% five-year residential fix at 65% LTV with a £999 product fee, and a similar deal for buy-to-let with a £1999 product fee and a rate of 5.14%. The products also have an option of £350 cashback or remortgage transfer service.
“There’s £60.1 billion worth of mortgages set to mature before the end of the year – that means a lot of people will be on the lookout for a new deal over the coming months,” said Jonathan Stinton, head of intermediary relationships at Coventry Building Society.
“We want to support our intermediary partners with competitive rates and standout service to make the process of sourcing and securing a new deal as straightforward as possible.”
According to news agency Newspage, many brokers welcomed the news, specifically the timing of the rate cuts as a lot of two-year fixed rates are due to mature in the fourth quarter.
“This is welcome news ahead of some of the Christmas maturities we will likely see due to the rush for Christmas completions back in 2021 for those who took two-year fixed rates,” said Emma Jones, managing director at When The Bank Says No.
“More good news on the mortgage front,” added Steven Hargreaves, mortgage and protection adviser at The Mortgage Co. “Coventry is doing its best to grab its share of the mortgage market in quarter four.
“Let’s hope these cuts start to stimulate the housing market. The current round of interest rate reductions mean rates are similar to the rates available at the end of June, before they increased sharply.”
Peter Stamford, director and mortgage expert at Moor Mortgages, agreed, saying that Coventry’s rates were being rolled back to where they were last summer.
“If you’re one of the many who rushed to seal a two-year deal before Christmas 2021, now’s the time to ring your adviser,” he reminded. “Coventry’s making a serious play for market share, and you could benefit.”
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