In a move set to delight prospective and current property owners, Coventry Building Society has announced a series of substantial reductions in their mortgage rates. These changes, set to come into effect on Thursday the 5th of October 2023 at 8 am, will impact both residential and buy-to-let borrowers, making homeownership and property investment more accessible and affordable for a wider range of customers.
Residential Mortgages From Coventry Building Society: A Win for New Borrowers and Existing Borrowers
For New Borrowers
Coventry Building Society is making significant changes to their residential mortgage offerings for new borrowers. The most noteworthy change is the reduction in all standard fixed rates, excluding the 75% loan-to-value (LTV) range. The specific rates are yet to be announced. This move is designed to provide new homebuyers with more competitive and cost-effective options when securing their dream home.
For Existing Borrowers
Existing borrowers with Coventry Building Society will also benefit from these changes. Coventry is lowering all standard 2-year fixed rates, except those at 75% and 90%-95% LTV. Additionally, borrowers can expect reductions in all standard 3-year fixed rates (excluding 75% LTV) and all standard 5-year fixed rates (excluding 75% and 95% LTV). Furthermore, Coventry is reducing all offset-only rates at 65% LTV, providing more flexibility and savings for existing homeowners. Once again, the specific rates are yet to be announced. It’s important to note that these changes do not apply to Coventry’s offset, interest-only, or offset interest-only ranges.
Buy to Let & Portfolio Buy to Let: Opportunities for New and Existing Borrowers
For New Borrowers
Buy-to-let investors and portfolio landlords will also benefit from Coventry Building Society’s rate reductions. Coventry is reducing all fixed rates in these categories, making property investment a more attractive proposition for new buyers. The buy-to-let market has taken a real battering over the last few months, with increased interest rates and stricter affordability criteria. These new rate reductions will undoubtedly be a nice surprise for landlords seeking to purchase.
For Existing Borrowers
Existing buy-to-let borrowers will find reason to celebrate as well. Coventry is lowering all 2-year fixed rates (excluding 50% LTV) and all 5-year fixed rates at 75% LTV, making it more cost-effective for investors to manage their existing property portfolios. By reducing rates across various LTV ranges and mortgage types, it seems that Coventry is aiming to make property investment more accessible and affordable, regardless of the borrower’s circumstances.
The UK Mortgage Market And Coventry’s Place
These changes come at a time when the property market continues to experience fluctuations and challenges, making affordable mortgage rates more critical than ever for aspiring homeowners and property investors. As with any mortgage product, it’s essential for borrowers to carefully consider their individual financial circumstances and consult with mortgage experts to determine the best option for their needs. Coventry Building Society is perhaps a less prevalent lender than your standard high street banks and building societies, however their product offerings are becoming more and more appealing.
With these significant rate reductions, Coventry Building Society is undoubtedly trying to position itself as a top choice for individuals and families looking to secure a new home or invest in the property market, amidst a rate war currently going on in the UK mortgage market. As the October 5th start date approaches, many will be eager to take advantage of these competitive rates to fulfil their property aspirations. The best thing to do if you are looking to get a new mortgage is always to speak with a mortgage advisor. Call or email our team today to see how we can help.