Reduced rates are available from Friday
Coventry Building Society has announced new rate reductions on residential and buy-to-let fixes, with lowered rates going live on Friday, September 15.
On the lender’s residential range, including new business, porting, further advances, and product transfers, all fixed new business rates and existing customer only rates at 50% to 80% loan-to-value (LTV) will be reduced. These include offset, interest-only, and offset interest-only. All tracker rates at 65% and 75% LTV will also be cut.
On Coventry’s buy-to-let range, rate cuts will be made on all fixed BTL and portfolio BTL new business rates and all BTL and portfolio BTL tracker rates. The lender will also reduce all two-year fixed BTL and portfolio BTL existing customer only rates, excluding 50% and 65% LTV rates with no fee. Rates of all five-year fixed BTL and portfolio BTL existing customer only rates will also be cut.
Brokers asked by news agency Newspage, responded positively to Coventry’s latest rate reduction.
“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,” commented Jamie Alexander, mortgage director at Alexander Southwell Mortgage Services. “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.”
Gary Bush, financial adviser at MortgageShop.com, said the mortgage rate cuts were further evidence that lenders had moved from shut-up-shop mode to full-blown price war mode.
“The net winners are going to be mortgage clients with lower monthly payments,” added Rhys Schofield, brand director at Peak Mortgages and Protection.
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