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"Well that was short-lived" as Coventry increases rates

Journalist: Justin Moy, Contributing Editor

ended 11. April 2025

Coventry BS, one of the first lenders to offer cheaper rates following the Trump tariff changes, has today announced it is increasing them. With the window of opportunity for cheaper rates potentially closing before it was fully opened, Newspage asked brokers if lenders were right to hold tight and not blink and where rates might be headed next following Barclays' reductions yesterday.

7 responses from the Newspage community

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Andrew Montlake
CEO at Coreco
This move is likely due to volume rather than ongoing volatility. Coventry were on a big breakaway from the rest of the mortgage peloton and were likely flooded with applications. With China announcing another salvo in the ongoing global trade war, swap rates could once again head south. Borrowers need to be prepared and ready to strike in what is a fast-moving mortgage market.
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Hannah Bashford
Director at Model Financial Solutions
Well that was short-lived. It's likely that Coventry were swamped with applications when the other big banks didn't respond to the reduction in swap rates in the same way, so closing their books is going to be the most sensible option to protect their balance sheets and maintain service levels. Given the value of swap rates currently, it is a shame that we're not seeing more big banks reducing, but with such volatility it is not really surprising.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Coventry should be commended for making the bold move but with markets yo-yoing, their resolve has been tested. There is still room for cuts but lenders will be conservative until sense and sensibility returns.
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Harry Goodliffe
Director at HTG Mortgages
That didn’t last long, did it? Coventry dipped their toe with cheaper rates, but as soon as swap rates twitched, they pulled back — and most lenders didn’t even flinch. Can’t really blame them though; the market's been a rollercoaster and no one wants to get caught out. I still think we’ll see more cuts later this year, especially if the Bank of England follows through with a base rate cut. But right now? It’s all a bit of a false start.
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Michelle Lawson
Director at Lawson Financial
Coventry were in the top spot, which is not where they like to be as nobody else followed their brave cuts. The markets are still volatile due to Trumponomics so borrowers need to take advice from brokers and be organised if they want to benefit from any temporary rate decreases.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
These rate increases by the Coventry highlight how uncertain current market conditions are. Rates can appear and be gone in a very short timeframe.
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Justin Moy
Managing Director at EHF Mortgages
Full marks to Coventry BS, who took the bold decision to cut rates as Swap rates fell, but as other lenders didn't follow, they were left with a leading 2-year fixed rate and attracted significant amounts of business. Most of the High Street lenders have not moved their rates, especially for those 1.4m borrowers who need a new deal in 2025. At least Coventry BS give borrowers 48 hours notice of any changes, allowing those looking for a low rate to take advantage. It's unclear if other lenders will cut rates in the next few days, but with Swap rates fluctuating it promises to be an uncertain few weeks coming up.