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Coventry announces rate changes

ended 19. April 2023

Coventry for Intermediaries this morning announced it will be closing products at 8pm Thursday 20 April and launching new products ( see below) at 8am Friday 21 April. Free PR platform, Newspage, asked brokers for their thoughts.

Owner-Occupied 
(new business, porting, further advances and product transfers)

  • Increasing all New Business 80% LTV Fixed rates
  • Reducing all Offset, Interest-Only & Offset Interest-Only rates (incl. Existing Client rates)

Buy to Let
(new business, porting, further advances and product transfers)

  • No changes to the range

4 responses from the Newspage community

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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This is interesting as they reduced all first-time buyer rates at the higher loan-to-value last week. Maybe they are now anticipating a rate rise in May, which is looking more likely after Wednesday's inflation data. It's good news that they are reducing offset and interest-only offerings, though, as there is definitely more demand for these products in the current climate, especially with interest rates on savings accounts still very low and the cost of living increasing. One thing that always goes in Coventry's favour is the amount of notice they give the broker community.
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Graham Cox
Director at Bridging Hub
Coventry could be pre-empting an anticipated base rate increase at the next Bank of England Monetary Policy Committee meeting on May 11th. It seems more likely given the lower-than-expected fall in the headline inflation figure on Wednesday. UK swap rates have also been rising recently, making the cost of wholesale borrowing more expensive for lenders.
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Chris Sykes
Technical Director and Senior Mortgage Adviser at Private Finance
I think this is merely a case of correcting some of the rates that they have currently, as they did a rate reduction last week and have been sourcing quite well across a lot of loan-to-value tiers. They have probably had quite a few applications and are just managing service levels proactively. They also do us brokers the favour of giving us plenty of notice which is good.
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Adam Smith
Founder at Alfa Mortgages
This is almost certainly a simple case of a lender scaling back and taking time to process the mound of applications they have had with their reduced rates.