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"Confidence-boosting announcement" from Coventry as it cuts fixed rates by up to 27bps

ended 03. February 2025

Ahead of this week's Bank of England meeting, with the markets saying a cut is a nailed-on certainty, Coventry has come out of the blocks early on Monday, announcing it is reducing all owner occupier fixed rates by up to 0.27% and buy-to-let rates by up to 20bps. Newspage asked brokers for their views, below.

5 responses from the Newspage community

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Dariusz Karpowicz
Director at Albion Financial Advice
Coventry Building Society has made a striking first move in the mortgage market this week, cutting fixed rates by up to 27 basis points while swimming against the current tide of rate increases. This strategic decision ahead of the Bank of England's meeting could well be the catalyst the market has been waiting for. With markets pricing in a base rate cut and the broader economic landscape shifting, February might finally deliver what January promised but failed to provide. While some major lenders are currently preoccupied with technical challenges, Coventry's bold step could mark the beginning of a more competitive mortgage landscape, assuming others follow suit rather than just admire from the sidelines.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This is a confidence-boosting announcement from the Coventry this morning. With the Bank of England expected to cut rates this week, and more cuts likely this year, this may be the start of a brighter spell for borrowers. Let's hope February delivers the cuts January did not.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
This is welcome news for borrowers at the beginning of the month and the hope is that it triggers a chain reaction across other lenders. January was a disappointing month on the mortgage rate front so fingers crossed February will deliver. A rate cut this week from the Bank of England is priced in and given the weakness of the UK economy alongside global market turbulence, more cuts are possible throughout the year.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
It's always a positive start to the week when a lender comes out with significant reductions to its fixed rates. This will hopefully inspire other lenders to follow suit, and it appears lenders may be thinking the Bank of England will be giving serious thought to a base rate cut this week.
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Elliott Culley
Director at Switch Mortgage Finance
After a prolonged period of rate increases in the aftermath of an uncertain Budget, the pendulum is now swinging back in the favour of consumers with rate decreases likely over the next week or so. This is part of the natural ebb and flow we have seen in the mortgage market over the past year or so. With the base rate likely to decrease this month, we should expect fixed rates to decrease across the board.