Coventry Building Society have announced a return to the market with some new higher rates, after withdrawing almost all of their existing residential products last week. For reasons that will no doubt become clearer in the next few weeks when the Bank of England‘s monetary policy committee reconvene to discuss whether or not they will raise the base rate again, many lenders pulled products from the market and are now starting to re-emerge with higher rates and less competitive products.
Rates Pulled In Favour Of Higher Rates
In the last week of May and first week of June 2023, many mortgage lenders pulled their products from the market. This was mainly instigated due to the office of national statistics releasing a report on the predicted level of inflation, prior to the Bank of England’s official announcement. The ONS believes that inflation still stands at around 8.7%. A drop from the heights of 10% that we saw earlier in the year, but still a far cry from the 2% inflation target that the Bank of England was hoping for.
To many mortgage lenders, this was a signal that the base rate would almost certainly be going up again in June when the Bank of England next has their review meeting. Wanting to get ahead of things it seems, many lenders who had previously started to reduce their rates decided to remove these products. Lenders such as Coventry, Barclays, Bank of Ireland, TMW, Santander, HSBC, Accord, and Nationwide all announced that they would be increasing their rates.
Coventry BS Returns To The Market With Higher Rates
This morning Coventry Building Society announced that they would be returning to the market with some increased residential and buy-to-let mortgage rate products. Here is a breakdown of what they have announced so far. Please note that this is not a complete list of the new products. If you want to go through all of the newly released products, please give our advisors at Oportfolio a call today:
Current rate 4.86% Max LTV 65% Product fee £999
Current rate 5.05% Max LTV 50% Product fee £1999
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Unfortunately with the sheer amount of lenders removing products, we will undoubtedly see more and more return to the market with higher rates over the coming weeks. Once the base rate figure is announced again by the Bank of England, we all need to brace ourselves for the possibility that rates could go up again by another 0.25% or even 0.5%. What can you do about this if you have a mortgage or are thinking of getting a mortgage?
The best thing to do is to speak to a mortgage professional about your options. A professional who has access to the entire mortgage market like Oportfolio Mortgages, so that they can help you to choose and secure the most competitive and beneficial product available for you.
If you are in need of a mortgage, please give our team a call today on 02088771169 or send us an email to get the ball rolling. We are here to help.