Coventry Building Society Announces Fixed Rate Reductions

by | Friday 4th Aug 2023 | Mortgage News

Coventry for Intermediaries, the mortgage intermediary specific arm of Coventry Building Society, has today revealed its plans to reduce all residential fixed rates and expand its product range to provide better support to clients and their mortgage brokers. The move comes after a number of other lenders have started to reduce their product rates, as the Coventry BS aims to adapt to current market conditions.

What Are The Changes From Coventry?

As part of its new release, Coventry for Intermediaries has reduced all residential fixed rates by up to 0.63% and selected buy-to-let rates by up to 0.55%. These rate reductions should make home ownership and property investments more affordable for potential buyers and investors alike, although rates are still much higher than they were 12-months ago, and lenders will need to keep dropping rates to get to a more competitive place overall.

One of the key highlights of the announcement from Coventry is the expanded product range. This new expansion includes the introduction of 3-year fixed rate options for residential applications rather than the standard 2 or 5-year options that most lenders offer. This new option provides customers with an additional choice, for those we aren’t willing to lock in for 5-years but also think that 2-years may be too short for them. Allowing borrowers to lock in competitive rates for a longer period, providing stability and peace of mind in an ever changing mortgage market.

Furthermore, Coventry is now offering 65% Loan-to-Value options for residential applications. This increase in LTV options is likely to benefit homebuyers with a smaller deposit, giving them a better chance to get on the property ladder. Additionally, for investors in the buy-to-let market, Coventry has introduced 75% LTV options for buy-to-let applications, making property investment more accessible to a broader range of potential landlords.

New Product Rates

Some of the standout products within the new range include a 6.05% two-year fixed rate to 28 February 2026 with 65% LTV and a £999 product fee. This option is available for both residential purchase and remortgage applications, making it an attractive choice for those looking to switch lenders or move home. For buy-to-let investors, Coventry is offering a 6.15% two-year fixed rate until the end of February 2026, also with 65% LTV and a £1999 product fee.

What Mortgage Brokers Think

These rate reductions and expanded product range by Coventry come at a crucial time when the UK property market has been experiencing fluctuations due to various economic factors. The move, like all other lender rate reductions and product introductions should boost confidence among buyers and investors, encouraging them to take advantage of the favourable lending conditions with the help of an expert mortgage broker.

Although not one of the big six high-street mortgage lenders, Coventry Building Society has been a prominent player in the mortgage market for many years, earning a reputation for often very competitive mortgage products and offerings. For prospective homebuyers and investors, these rate reductions and additional product options may present an excellent opportunity to secure a mortgage with competitive terms. However, as the market continues to evolve, it is advisable for borrowers to seek advice from professional advisors to identify the most suitable mortgage option for their individual circumstances. That’s why you should always give us a call at Oportfolio so that we can help you to get the right product for your circumstances.

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